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The impact of corporate governance practices on R&D efforts: a look at shareholders' rights, cross-listing, and control pyramid

Lhuillery, Stephane

In: Industrial and Corporate Change, 2011, vol. 20, no. 5, p. 1475-1513

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    Title
    • The impact of corporate governance practices on R&D efforts: a look at shareholders' rights, cross-listing, and control pyramid
    Author
    • Lhuillery, Stephane. *Stephane Lhuillery, ICN Business School, 3 place Edouard Branly, 57070 Metz Technopôle, France; and, Ecole Polytechnique Federale de Lausanne, College du Management de la Technologie, Station 5, Odyssea 1.18, CH-1015 Lausanne, Switzerland. e-mail: stephane.lhuillery@icn-groupe.fr
    Document Type
    • Postprint
    Language
    • English
    Published in
    • Industrial and Corporate Change, 2011, vol. 20, no. 5, p. 1475-1513. Oxford University Press
    Other Version
    OAI-PMH Identifier
    • oai:doc.rero.ch:289526
    Summary
    The article considers the impact of multiple shareholder-oriented governance practices on R&D decisions. Based on a sample of 5528 firms belonging to 110 large French listed business groups, our results substantiate the idea that shareholder-oriented governance practices and a lower position in a control pyramid are better for R&D investment. The introduction of any additional shareholder oriented practice is found to result in more R&D. We show, however, that this Anglo-Americanization of the French corporate governance system is only partial. We provide evidence of the co-existence of an old French system of corporate governance with a hybrid model of corporate governance. The lack of concrete results on complementarity among shareholder-oriented governance practices casts doubt on the stability of this hybrid model in the French context