In this article we analyse how board characteristics influence firm innovation. Firm innovation refers to basic innovation and entrepreneurial activities internal to a firm, such as the firm emphasis on new product development, innovation technology, and RandD investments. Drawing on agency theory, we developed hypotheses on specific board structural characteristics - i.e., board size, outsider ratio, directors’ shareholdings, and CEO duality - and firm innovation. We tested our model on a sample of 301 large manufacturing Italian companies. We find support for our argument that – contrary to predictions of agency theory on CEO ownership - directors’ shareholdings negatively influence firm propensity to innovate. Our results also suggest that board size may play a role in shaping firm propensity toward innovation.
Boards of Directors and Firm Innovation: an Empirical Analysis on Large Italian Companies / Zona, Fabio; A., Minichilli; A., Zattoni. - STAMPA. - (2009), pp. 495-504.
|Titolo:||Boards of Directors and Firm Innovation: an Empirical Analysis on Large Italian Companies|
|Autori:||Zona, Fabio; A., Minichilli; A., Zattoni|
|Titolo del volume contenente il saggio:||The Value Creating Board. Corporate Governance and Organizational Behaviour|
|Luogo di edizione:||London; New York|
|Anno di pubblicazione:||2009|
|Citazione:||Boards of Directors and Firm Innovation: an Empirical Analysis on Large Italian Companies / Zona, Fabio; A., Minichilli; A., Zattoni. - STAMPA. - (2009), pp. 495-504.|
|Appare nelle tipologie:||02.1 Saggio su volume miscellaneo o Capitolo di libro (Essay or Book Chapter)|
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