The impact of corporate governance provisions on R&D intensity:a closer look at corporate governance in an internationalperspective

Abstract: Using panel data analysis, this paper considers the impact of governance provisions on firm’sR&D investment decisions. The current paper also contributes to the literature on corporategovernance and innovation by introducing an interaction dimension which captures theinfluence that internationalization of U.S. firms may have on R&D investment decisions. Basedon a sample of 627 U.S. firms for the years 2008-2016 this paper’s results suggest thatgovernance provisions do not nurture or impede R&D investments, and therefore the resultscasts doubt on the existence of a relationship between governance provisions and R&Dintensity. The current paper’s findings also suggest that proposed effects of internationalizationdo not modify the relationship between entrenchment and R&D for U.S. firms.