Directors’ board, R&D investment and firm’s performance: Evidence from France

Abstract

This research examines the relationship between the board of directors and firm’s performance through the R&D investment-level in the French context from perspectives of corporate governance. Our model seeks to identify if the R&D investment-level acts as a mediating variable between, on the one hand, the dominance of outside directors, the dual structure and the board size, and secondly, the performance. The empirical study is based on a sample of 178 French firms for the period 2008-2012. The results of the linear regressions conducted show that the relationship between boards composition linked variables and the firm performance are meditated by the firm R&D investment-level.