Frequency of Board Meetings and R&D Investment Strategy: Evidence from OECD Countries - Theoretical Economics Letters

TEL > Vol.8 No.14, October 2018

Theoretical Economics Letters

Volume 8, Issue 14 (October 2018)

ISSN Print: 2162-2078 ISSN Online: 2162-2086

Google-based Impact Factor: 1.19 Citations h5-index & Ranking

Frequency of Board Meetings and R&D Investment Strategy: Evidence from OECD Countries ()

HTML XML

Download as PDF (Size: 440KB) PP. 3016-3033

DOI: 10.4236/tel.2018.814187 905 Downloads 1,979 Views Citations

Author(s)

Aws AlHares^1*, Collins Ntim², Osama Al-Hares³, Ruba Al Abed⁴

Affiliation(s)

¹Department of Accountancy and Finance, Business School, University of Huddersfield, Huddersfield, UK.
²Department of Accounting, Southampton Business School, University of Southampton, Southampton, UK.
³Department of Finance and Accounting, University of Wollongong in Dubai, Dubai, UAE.
⁴School of Business Studies, College of the North Atlantic in Qatar, Doha, Qatar.

ABSTRACT

This study seeks to examine the impact of frequency of board meetings on R&D investment strategy in OECD countries. The study uses a panel data of 200 companies from Anglo American and European countries between 2010 and 2014. The ordinary least square regression is used to examine the relationships. Additionally, to alleviate the concern of potential endogeneity, we use fixed effect regression, two-stage least squares using instrumental variables. The results show that there is a negative and significant relationship between frequency of board meetings and R&D investment strategy, with a greater significance among Anglo American countries than among Continental European countries. The rationale for this is that the legal and accounting systems in the Anglo American countries have greater protection through greater emphasis on compliance and disclosure and therefore allowing for less risk-taking. Future research could investigate R&D investment strategy using different arrangement, conducting face-to-face meetings with firm’s directors and shareholders. This study extends, as well as contributes to the extant CG literature by offering new evidence on the effect of frequency of board meetings on R&D investment strategy between two different traditions. The findings will help regulators and policy makers in the OECD countries in evaluating the adequacy of the current CG reforms to prevent management misconduct and scandals.

KEYWORDS

R&D, Corporate Governance, Anglo-American Tradition, Continental European Tradition, OECD Countries, Frequency of Board Meetings

Share and Cite:

AlHares, A. , Ntim, C. , Al-Hares, O. and Al Abed, R. (2018) Frequency of Board Meetings and R&D Investment Strategy: Evidence from OECD Countries. Theoretical Economics Letters, 8, 3016-3033. doi: 10.4236/tel.2018.814187.

Cited by

[1]	Influence of board attributes on board roles performance in Savings and Credit Co-operative Societies (SACCOS) in Tanzania
	Business management review, 2022

[2]	Corporate governance mechanisms and R&D intensity in OECD countries
	International Journal of Corporate Governance, 2021

[3]	Board leadership, board meeting frequency and firm performance in two‐tier boards
	2021

[4]	Effect of Corporate Governance Practices on R&D and Innovation Costs: A Case Study on Borsa Istanbul
	Journal of Accounting and Taxation …, 2021

[5]	Exploring processes in Spanish, German and UK boards: a measurement framework of board know-how, board diversity and directors' interactions interrelation
	Calabuig, ME Fabra, I Osadnik - … : An International Journal, 2021

[6]	The impact of corporate social responsibility on consumer's relationship intention: Evidence from MENA countries
	Asi, G Dominic… - Journal of Governance …, 2021

[7]	Institutional Ownership and Cost of Capital: An International Study
	2020

[8]	THE IMPACT OF CORPORATE GOVERNANCE MECHANISMS ON RISK DISCLOSURE
	2020

[9]	The Corporate Governance Practices: Evidence from MENA Countries
	2019

[10]	Corporate governance and cost of capital in OECD countries
	2019

[11]	Kurumsal yönetim uygulamalarının Ar-Ge ve inovasyon maliyetleri üzerindeki etkisi: Borsa İstanbulda bir araştırma
	2019

Journals Menu

Follow SCIRP

	+1 323-425-8868
	customer@scirp.org
	+86 18163351462(WhatsApp)
	1655362766

	Paper Publishing WeChat

Journals Menu

Home

About SCIRP

Service

Policies