DIRECTORS’ BOARD, R&D INVESTMENT AND THE FIRM’S PERFORMANCE: EVIDENCE FROM THE FRENCH CASE

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Abstract

This study examines the relationship between the board of directors and firm performance in terms of the level of R&D investment in the French context and some corporate governance points of view. Our model seeks to show whether the level of investment in R&D acts as an intermediary variable between, on the one hand, the dominance of external directors, the double structure and size of the board of directors, and, on the other, productivity. This empirical study is based on a sample of 178 French firms for the period 2008-2012. The results of the linear regression show that the relationship between the variables associated with the composition of the board of directors and the effectiveness of the company depends on the level of investment of the company in R&D.

Keywords: Outside Directors; Dual Structure; Board Size; R&D; Performance

How to cite this paper: Zouari, G., & Zouari-Hadiji, R. (2014). Directors’ board, R&D investment and the firm’s performance: Evidence from the French case. Corporate Board: role, duties and composition, 10(2), 85-101. https://doi.org/10.22495/cbv10i2art7