Title: The moderating effects of the board of directors on the relationship between R&D investment and firm performance

Authors: Basma Sellami Mezghanni

Addresses: Institute of Advanced Business Studies, University of Sfax, Route Sidi Mansour Km 10 B.P. 568, 3018 Sfax, Tunisia

Abstract: This research examines how the board of directors affects the relationship between Research and Development (R&D) investment and firm performance. The study, conducted on a sample of French companies listed on Euronext Paris, shows that the relationship between R&D investment and firm performance is significantly positive. However, this relationship varies significantly with the characteristics of the board of directors. Specifically, the results show that board independence, chief executive officer and chairman duality and the number of board meetings have a positive effect on the R&D investment-firm performance relationship, whereas board size affects this relationship negatively.

Keywords: R&D investment; research and development; corporate governance; company boards; company directors; managerial opportunism; corporate performance; financial performance; moderating effects; firm performance; France; Euronext Paris; stock exchanges; listed companies; positive relationships; board independence; chief executive officers; CEOs; company chairmen; duality; board meetings; positive effects; board size; negative relationships; business governance; business ethics.

DOI: 10.1504/IJBGE.2011.043241

International Journal of Business Governance and Ethics, 2011 Vol.6 No.3, pp.264 - 293

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 20 Oct 2011 *

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