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Board diversity and corporate innovation: New evidence from the Canadian context

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  • Abtahi, Zahra
  • Chkir, Imed
  • Benkraiem, Ramzi

Abstract

Previous research on board diversity and firms’ innovation reported mixing results depending on the country studied. This paper is the first to investigate the association between three dimensions of board diversity: gender, education and tenure, and the innovation output of Canadian firms. We find that firms that have more than twenty-five percent of the board members as women are more innovative and corporate risk-taking is a mechanism for this effect. Board education diversity has a positive effect on innovation; however, we find no association between firms’ innovation and the experience diversity on the board or in the company.

Suggested Citation

  • Abtahi, Zahra & Chkir, Imed & Benkraiem, Ramzi, 2023. "Board diversity and corporate innovation: New evidence from the Canadian context," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s154461232300199x
    DOI: 10.1016/j.frl.2023.103826
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    References listed on IDEAS

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    1. Brinette, Souad & Benkraiem, Ramzi & Khemiri, Sabrina, 2024. "Does directors’ educational background influence financing innovation through corporate venture capital investments? Evidence from France," Finance Research Letters, Elsevier, vol. 60(C).

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    More about this item

    Keywords

    Innovation; Board diversity; Patents; Canada; Risk-taking; Corporate governance;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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