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Technology directors and firm innovation

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  • Li, Yunhe
  • Liu, Yu
  • Xie, Feixue

Abstract

This study examines the influence of board directors with technological expertise on innovation using a panel of listed manufacturing firms in China from 2008 to 2017. The results show that technology directors positively affect firm innovation activities measured by R&D expenditure to sales ratio, invention patents applied for and granted, and utility model/design patents applied for and granted. The effect of technology directors on patents applied for and granted is weaker in firms with financial constraints and firms with CEO-chairman duality. Furthermore, independent technology directors show a stronger effect on invention patents granted than executive technology directors do.

Suggested Citation

  • Li, Yunhe & Liu, Yu & Xie, Feixue, 2019. "Technology directors and firm innovation," Journal of Multinational Financial Management, Elsevier, vol. 50(C), pages 76-88.
    • Handle: RePEc:eee:mulfin:v:50:y:2019:i:c:p:76-88
    DOI: 10.1016/j.mulfin.2019.04.001
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    2. Zhouzhou Lin & Dezhi Liang & Shengnan Li, 2022. "Environmental Regulation and Green Technology Innovation: Evidence from China’s Heavily Polluting Companies," Sustainability, MDPI, vol. 14(19), pages 1-18, September.
    3. Yexin Liu & Yecheng Wu & Weiwei Wu, 2023. "Which kind of board benefits more from the relationship between entrepreneurial orientation and radical innovation? The asymmetric roles of board characteristics in China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    4. He, Feng & Ma, Yaming & Zhang, Xiaojie, 2020. "How does economic policy uncertainty affect corporate Innovation?–Evidence from China listed companies," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 225-239.
    5. Liu, Yu, 2020. "The comparative and interactive effects of political, academic and financial directors," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 546-565.
    6. Yu, Zhen & Xiao, Yao & Li, Jinpo, 2021. "Firm-level perception of uncertainty and innovation activity: Textual evidence from China's A-share market," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    7. Emilio Abad-Segura & Mariana-Daniela González-Zamar & Eloy López-Meneses & Esteban Vázquez-Cano, 2020. "Financial Technology: Review of Trends, Approaches and Management," Mathematics, MDPI, vol. 8(6), pages 1-37, June.
    8. Yexin Liu & Weiwei Wu & Ruixiang Han, 2021. "Technology-Independent Directors and Innovative Knowledge Assets: A Contingency Perspective," Sustainability, MDPI, vol. 13(16), pages 1-17, August.

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    More about this item

    Keywords

    Technology directors; Innovation; R&D; Patents; China;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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