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The effect of board of directors on R&D intensity: board tenure and multiple directorships
Author(s) -
Bravo Francisco,
RegueraAlvarado Nuria
Publication year - 2017
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/radm.12260
Subject(s) - business , accounting , agency (philosophy) , principal–agent problem , resource dependence theory , sample (material) , r&d intensity , resource (disambiguation) , management , corporate governance , finance , economics , computer science , computer network , chemistry , chromatography , philosophy , epistemology
Taking a combination between agency theory and resource dependence theory, we point out that directors' capital may have an effect on R&D strategies. A sample of both high‐tech and low‐tech industries for the period 2007–2011 is used. The results indicate that, regardless of the type of industry and the specific expertise on R&D intensive companies, board members with multiple directorships influence R&D corporate strategies. The resources acquired by directors through their experience and connections positively influence R&D intensity, but only if directors can carry out their monitoring activity adequately. This evidence implies a step forward in the understanding of the role of board of directors in corporate strategy, thus having significant implications for academics, companies and regulators, which are both theoretical and practical.