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Corporate governance practices and companies’ R&D orientation: evidence from European countries

"This working paper empirically investigates if corporate governance practices affect the resources firms devote to R&D. The authors Florence Honoré, Federico Munari and Bruno van Pottelsberghe found that an executive remuneration system that is linked to the firm’s financial performance ha...

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Bibliographic Details
Main Authors: Honoré, Florence, Munari, Federico, van Pottelsberghe de la Potterie, Bruno
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Brussels 2011
Bruegel
Subjects:
innovation
research and development
shareholder
statistics
corporate governance
EU countries
Online Access:https://www.labourline.org/KENTIKA-19182863124919000459-Corporate-governance-practices.htm
Description
Summary:"This working paper empirically investigates if corporate governance practices affect the resources firms devote to R&D. The authors Florence Honoré, Federico Munari and Bruno van Pottelsberghe found that an executive remuneration system that is linked to the firm’s financial performance has a particularly strong negative impact on R&D. This confirms the hypothesis that incentive mechanisms lead managers to focus on more predictable and easily measurable short-term activities,ultimately hampering the commitment to innovative projects."
Physical Description:42 p.
Digital

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