TY - JOUR

T1 - Board of directors as a factor of firm performance in innovative companies

AU - Berezinets, Irina

AU - Berezkin, Kirill

AU - Ilina, Yuliya

AU - Naoumova, Irina

N1 - Board of directors as a factor of firm performance in innovative companies / I. Berezinets, K. Berezkin, Y. Ilina, I. Naoumova // International Journal of Innovation Management. – 2018. – Issue N/A. – P. N/A.

PY - 2019

Y1 - 2019

N2 - The emerging markets undergo constant transformations and changes, and thus, a change of strategy can be critical for companies. However, the impact of R&D investment on firm performance and the role of the board of directors that makes decisions about a company's innovative activities remain inconclusive. This paper investigates the relationship between a board of directors' composition and structure in innovative companies and firm performance. Using the panel data of innovative Russian public companies that made R&D investments in 2011-2013, we found a positive relationship between the boards' independence and ROA as an indicator of firm performance. Moreover, it was shown that innovative companies that establish a strategy committee will on average have a higher ROA ratio than innovative companies without such a committee. Innovative firms in emerging markets might consider creating strategic committees and increasing board independence to enhance their performance and increase the number of successful R&D investments.

AB - The emerging markets undergo constant transformations and changes, and thus, a change of strategy can be critical for companies. However, the impact of R&D investment on firm performance and the role of the board of directors that makes decisions about a company's innovative activities remain inconclusive. This paper investigates the relationship between a board of directors' composition and structure in innovative companies and firm performance. Using the panel data of innovative Russian public companies that made R&D investments in 2011-2013, we found a positive relationship between the boards' independence and ROA as an indicator of firm performance. Moreover, it was shown that innovative companies that establish a strategy committee will on average have a higher ROA ratio than innovative companies without such a committee. Innovative firms in emerging markets might consider creating strategic committees and increasing board independence to enhance their performance and increase the number of successful R&D investments.

KW - SCOPUS

KW - corporate governance

KW - boards

KW - non-executive directors

KW - SCOPUS

KW - board structure

KW - R&D investments

KW - firm performance

KW - innovative companies

KW - board composition

UR - https://www.scopus.com/record/display.uri?eid=2-s2.0-85056876076&origin=resultslist

UR - http://www.scopus.com/inward/record.url?scp=85056876076&partnerID=8YFLogxK

U2 - 10.1142/S1363919619500609

DO - 10.1142/S1363919619500609

M3 - Article

VL - 23

JO - International Journal of Innovation Management

JF - International Journal of Innovation Management

SN - 1363-9196

IS - 6

M1 - 1950060

ER -