The Impact of Board Capital on R&D Investment

DOI: 10.5176/2251-1997_AF37

Authors: Hsiang-Lan Chen

Abstract:

This study investigates the effect of board capital by utilizing a data set of electric firms listed on the Taiwan Stock Exchange Corporations. The empirical results indicate that board size and directors' educational level significantly influence R&D investment, The impact of the frequency of board meetings on R&D investment is positive, but not significant. The findings provide once important managerial implication that firms competing on innovation may consider having a smaller board or giving considerable weight to the nomination of highly educated directors to the board.

Keywords: R&D investment, board size, directors' educational level, frequency of board meetings.