The impact of country-level corporate governance on research and development

[EN] We investigate the process through which country-level corporate governance facilitates firm-level investment in research and development (R&D). Taking cash flow as one of the main determinants of R&D, we derive an econometric model that introduces a number of corporate governance facto...

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Detalhes bibliográficos
Autores: Hillier, David, Pindado García, Julio, Queiroz, Valdoceu de, De la Torre, Chabela
Tipo de documento: artigo
Estado:Versão publicada
Data de publicação:2011
País:España
Recursos:Universidad de Salamanca (USAL)
Repositório:GREDOS. Repositorio Institucional de la Universidad de Salamanca
OAI Identifier:oai:gredos.usal.es:10366/149744
Acesso em linha:http://hdl.handle.net/10366/149744
Access Level:Acceso aberto
Palavra-chave:Corporate governance
Research and development
Control mechanisms
Financial system
Legal protection
5312.10 Investigación y desarrollo
5311 Organización y Dirección de Empresas
5307.08 Teoría del Crecimiento Económico
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oai_identifier_str oai:gredos.usal.es:10366/149744
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repository_id_str
spelling The impact of country-level corporate governance on research and developmentHillier, DavidPindado García, JulioQueiroz, Valdoceu deDe la Torre, ChabelaCorporate governanceResearch and developmentControl mechanismsFinancial systemLegal protection5312.10 Investigación y desarrollo5311 Organización y Dirección de Empresas5307.08 Teoría del Crecimiento Económico[EN] We investigate the process through which country-level corporate governance facilitates firm-level investment in research and development (R&D). Taking cash flow as one of the main determinants of R&D, we derive an econometric model that introduces a number of corporate governance factors (legal protection, financial system, and control mechanisms) to analyze their impact on R&D-cash flow sensitivity. Using data from nine European Union countries, Japan, and the United States, we show that R&D at the firm level is less sensitive to internal cash flow in countries with effective investor protection, developed financial systems, and strong corporate control mechanisms. Specifically, our analysis suggests that the characteristics of the corporate governance system that facilitate R&D are a common law legal environment, minority shareholder protection, strong law enforcement, a bank-based financial system, effective board control, and a strong market for corporate control. This evidence points to corporate governance as a key element in R&D investment, and contributes to the debate on whether country-level corporate governance systems can facilitate R&D projects and, indirectly, promote economic growth.JSTOR Collection202220222011info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://hdl.handle.net/10366/149744reponame:GREDOS. Repositorio Institucional de la Universidad de Salamancainstname:Universidad de Salamanca (USAL)InglésAttribution-NonCommercial-NoDerivatives 4.0 Internacionalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:gredos.usal.es:10366/1497442026-06-07T06:28:51Z
dc.title.none.fl_str_mv The impact of country-level corporate governance on research and development
title The impact of country-level corporate governance on research and development
spellingShingle The impact of country-level corporate governance on research and development
Hillier, David
Corporate governance
Research and development
Control mechanisms
Financial system
Legal protection
5312.10 Investigación y desarrollo
5311 Organización y Dirección de Empresas
5307.08 Teoría del Crecimiento Económico
title_short The impact of country-level corporate governance on research and development
title_full The impact of country-level corporate governance on research and development
title_fullStr The impact of country-level corporate governance on research and development
title_full_unstemmed The impact of country-level corporate governance on research and development
title_sort The impact of country-level corporate governance on research and development
dc.creator.none.fl_str_mv Hillier, David
Pindado García, Julio
Queiroz, Valdoceu de
De la Torre, Chabela
author Hillier, David
author_facet Hillier, David
Pindado García, Julio
Queiroz, Valdoceu de
De la Torre, Chabela
author_role author
author2 Pindado García, Julio
Queiroz, Valdoceu de
De la Torre, Chabela
author2_role author
author
author
dc.subject.none.fl_str_mv Corporate governance
Research and development
Control mechanisms
Financial system
Legal protection
5312.10 Investigación y desarrollo
5311 Organización y Dirección de Empresas
5307.08 Teoría del Crecimiento Económico
topic Corporate governance
Research and development
Control mechanisms
Financial system
Legal protection
5312.10 Investigación y desarrollo
5311 Organización y Dirección de Empresas
5307.08 Teoría del Crecimiento Económico
description [EN] We investigate the process through which country-level corporate governance facilitates firm-level investment in research and development (R&D). Taking cash flow as one of the main determinants of R&D, we derive an econometric model that introduces a number of corporate governance factors (legal protection, financial system, and control mechanisms) to analyze their impact on R&D-cash flow sensitivity. Using data from nine European Union countries, Japan, and the United States, we show that R&D at the firm level is less sensitive to internal cash flow in countries with effective investor protection, developed financial systems, and strong corporate control mechanisms. Specifically, our analysis suggests that the characteristics of the corporate governance system that facilitate R&D are a common law legal environment, minority shareholder protection, strong law enforcement, a bank-based financial system, effective board control, and a strong market for corporate control. This evidence points to corporate governance as a key element in R&D investment, and contributes to the debate on whether country-level corporate governance systems can facilitate R&D projects and, indirectly, promote economic growth.
publishDate 2011
dc.date.none.fl_str_mv 2011
2022
2022
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10366/149744
url http://hdl.handle.net/10366/149744
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.rights.none.fl_str_mv Attribution-NonCommercial-NoDerivatives 4.0 Internacional
http://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Attribution-NonCommercial-NoDerivatives 4.0 Internacional
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.publisher.none.fl_str_mv JSTOR Collection
publisher.none.fl_str_mv JSTOR Collection
dc.source.none.fl_str_mv reponame:GREDOS. Repositorio Institucional de la Universidad de Salamanca
instname:Universidad de Salamanca (USAL)
instname_str Universidad de Salamanca (USAL)
reponame_str GREDOS. Repositorio Institucional de la Universidad de Salamanca
collection GREDOS. Repositorio Institucional de la Universidad de Salamanca
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,300719

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