DIFFERENT BOARD STRUCTURES AND R&D: EVIDENCE FROM JAPANESE CORPORATION

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Abstract

This study examines the effect of different board style and ownership, and board composition on R&D investment in Japanese corporation. I explore how different board structure contribute to R&D investment in varied way and the impact of different type of governance on R&D investment incorporation. I analyze it with 2010-2014 panel data regarding Japanese corporate governance. I found that different type of corporate governance make impacts on R&D in corporations indicating the specific relationship between corporate governance and R&D, not explained by agency theory. This study observed that Board composed of insider avoid interference of institutional investors by caring about investor’s interests.

Keyword: Board Structure, R&D, Institutional Investor, Agency Theory, Outside Director

How to cite this paper: Nishi, T. (2015). Different board structures and R&D: Evidence from Japanese corporation. Corporate Board: role, duties and composition, 11(2-1), 171-201. https://doi.org/10.22495/cbv11i2c1art3