The Impact of Corporate Governance Practices on R&D Intensities of Firms: An Econometric Study on French Largest Companies

Lhuillery, S. (2011). The impact of corporate governance practices on R&D efforts: a look at shareholders’ rights, cross-listing, and control pyramid. Industrial and Corporate Change, 20(5), 1475-1513.

27 Pages Posted: 27 Jun 2009 Last revised: 29 Jul 2014

See all articles by Stephane Lhuillery

Stephane Lhuillery

Neoma Business School; University of Strasbourg - Bureau of Economic Theory and Application (BETA)

Date Written: March 1, 2009

Abstract

The paper considers the impact of multiple shareholder-oriented governance practices on R&D decisions. Based on a sample of 5,713 firms belonging to 110 large French listed business groups, our results substantiate the idea that shareholder-oriented governance practices and a lower position in a control pyramid are better for R&D investment. The introduction of any additional shareholder oriented practice is found to result in more R&D. We show however that this Anglo-Americanization of the French corporate governance system is only partial. We provide evidence of the co-existence of an old French system of corporate governance with a hybrid model of corporate governance. The lack of concrete results on complementarity among shareholder oriented governance practices casts doubt on the stability of this hybrid model in the French context.

Keywords: corporate governance, R&D, innovation, provisions

JEL Classification: O31, O32, G31, G32

Suggested Citation

Lhuillery, Stephane, The Impact of Corporate Governance Practices on R&D Intensities of Firms: An Econometric Study on French Largest Companies (March 1, 2009). Lhuillery, S. (2011). The impact of corporate governance practices on R&D efforts: a look at shareholders’ rights, cross-listing, and control pyramid. Industrial and Corporate Change, 20(5), 1475-1513., Available at SSRN: https://ssrn.com/abstract=1426089 or http://dx.doi.org/10.2139/ssrn.1426089

Stephane Lhuillery (Contact Author)

Neoma Business School ( email )

1 Rue du Maréchal Juin
Mont Saint Aignan Cedex, 76825
France

University of Strasbourg - Bureau of Economic Theory and Application (BETA) ( email )

France

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