Abstract
Under the condition of global economic recession after the pandemic of Covid-19, companies are seeking growth opportunities. Corporate innovation is an essential driver for the companies’ competitiveness. The paper takes the advantage of fixed effect linear regression model to analyze board features’ impact on firm innovation level. The model is based on the CSMAR database, a comprehensive research-oriented database focusing on China’s Finance and Economy to obtain the latest 10-year (2012–2022) annual firm-level R&D and individual-level board member characteristics data. The empirical result shows that a board with a larger proportion of independent directors, a larger board size, a higher financial background rate, larger average age, and a higher average degree tends to be innovation-centric. Furthermore, this paper dives deeper into the determinants of board gender diversity, which is an essential explanatory variable for company innovation. The result indicates that a board with a female chairman, a high oversea background rate, and a low multi-subject rate is often correlated with high gender diversity.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Yoo, T., Sung, T.: How outside directors facilitate corporate R&D investment? Evidence from large Korean firms. J. Bus. Res. 68(6), 1251–1260 (2015)
Prencipe, A.: Board composition and innovation in university spin-offs: evidence from the Italian context. J. Technol. Manag. Innov. 11(3), 33–39 (2016)
Blibech, N., Berraies, S.: The impact of CEO’ duality and board’s size and independence on firms’ innovation and financial performance. E3 J. Bus. Manag. Econ. (2018)
Drees, J.M., Heugens, P.P.: Synthesizing and extending resource dependence theory. J. Manag. 39(6), 1666–1698 (2013)
Chen, H.: Board capital, CEO power and R&D investment in electronics firms. Corporate Gov.: Int. Rev. 22(5), 422–436 (2014)
Francis, B.B., Hasan, I., Wu, Q.: Professors in the boardroom and their impact on corporate governance and firm performance. Financ. Manag. 44(3), 547–581 (2015)
Ghosh, S.: Banker on board and innovative activity. J. Bus. Res. 69(10), 4205–4214 (2016)
Belkacemi, R., Bouzinab, K., Papadopoulos, A.: A cognitive approach to diversity: investigating the impact of board of directors’ educational and functional heterogeneity on innovation performance. Int. J. Bus. Manag. 16(2), 1–20 (2021)
An, H., Chen, C.R., Wu, Q., Zhang, T.: Corporate innovation: do diverse boards help? J. Financ. Quant. Anal. 56(1), 155–182 (2021)
Griffin, D., Li, K., Xu, T.: Board gender diversity and corporate innovation: international evidence. J. Financ. Quant. Anal. 56(1), 123–154 (2021)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Bu, Z. (2024). Causality Between Board Features and Corporate Innovation Level: Empirical Evidence from Listed Companies in China. In: Li, X., Yuan, C., Kent, J. (eds) Proceedings of the 7th International Conference on Economic Management and Green Development. ICEMGD 2023. Applied Economics and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-97-0523-8_121
Download citation
DOI: https://doi.org/10.1007/978-981-97-0523-8_121
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-97-0522-1
Online ISBN: 978-981-97-0523-8
eBook Packages: Economics and FinanceEconomics and Finance (R0)