The impact of corporate governance on firms' propensity to innovate - multidimensional and cross-country analysis
Bibliographic Data
| ID | 13023912 |
|---|---|
| Authors | Moh’d Alsqour (0000-0003-0167-3429, corresponding author), Husam Ananzeh (0000-0001-7274-1199), Arkadiusz Jurczuk (0000-0003-2994-8180), Paweł Kędziora |
| Year | 2024 |
| Volume | 17 |
| Issue | 3 |
| Pages | 95-116 |
| Publication date | 2024-09-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | JOURNAL OF INTERNATIONAL STUDIES (JOURNAL) |
| Journal identifiers | ISSN: 2071-8330 • E-ISSN: 2306-3483 |
| Publisher | Centre of Sociological Research, NGO (PUBLISHER) |
| DOI | 10.14254/2071-8330.2024/17-3/5 |
| OpenAlex | W4403781733 |
| Language | EN |
| References cited | 53 |
The study examines the correlation between corporate governance ratings, a crucial element of the Environmental, Social, and Governance (ESG) index provided by Thomson Reuters, and companies' inclination towards innovation. Employing a cross-country analysis, the research explores how governance ratings influence corporate innovation decisions. The results reveal a positive association between corporate governance scores and the implementation of innovative practices. Notably, board effectiveness, commitment, vigilance, and compensation structure significantly impact firms' innovation levels. The study further demonstrates that the positive relationship between ESG ratings and innovation is particularly pronounced in companies with larger, more diverse boards, active audit committees, and well-structured compensation systems. This research enhances our understanding of how robust corporate governance frameworks can drive innovation by fostering transparency, accountability, and a positive work environment. Such governance structures mitigate risks, deter unethical behavior, and promote long-term corporate sustainability. Consequently, the study suggests that organizations should prioritize strong corporate governance practices to bolster their innovation capabilities. The findings underscore the pivotal role of corporate governance in shaping firms' innovative potential, contributing valuable insights to the intersection of governance and innovation in the corporate landscape
Business · Corporate governance · Cross country · Economics · International economics · Propensity score matching · Corporate Finance and Governance · Firm Innovation and Growth · International Business and FDI · Finance
Strategic Management
Transformational Leadership
Profiting from innovation in the digital economy
Innovation and Institutional Ownership
Boards
Women in the boardroom and their impact on governance and performance☆
Theory of the firm
Firm Resources and Sustained Competitive Advantage
Performance Pay and Top-Management Incentives
| Highly cited | No |
|---|