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Fabrizio Rossi and Richard J. Cebula
''Does the Board of Directors Affect the Extent of Corporate R&D? Evidence from Italian listed companies''
( 2015, Vol. 35 No.4 )
Using a panel dataset for 369 firm-year observations during the period 2005-2013 in the Italian context, we investigate the impact of certain characteristics of corporate boards on the magnitude of corporate Research and Development (R&D). Our findings reveal a negative relationship between R&D and board size on the one hand and between R&D and board ownership on the other hand. Moreover, we find strong evidence of a positive and statistically significant relationship between R&D and independent corporate board directors. In addition, we also find a relationship between R&D and board diversity effect, as measured by women and foreign members on the boardroom. Our study uses multiple econometric models to address endogeneity issues.
Keywords: Board of Directors, R&D, Agency Theory, Corporate Governance
JEL: G3 - Corporate Finance and Governance: General
O3 - Technological Change; Research and Development: General
Manuscript Received : Aug 04 2015 Manuscript Accepted : Dec 13 2015

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