This study investigates the effects of board characteristics on R&D investment by utilizing a data set of electronics firms listed on the Taiwan Stock Exchange Corporations. The empirical results indicate that R&D investment is negatively associated with board size and positively associated with directors’ education level. The impact of board meeting frequency on R&D investment is positive, but not significant. The findings provide one important managerial implication that firms competing on innovation through R&D spending may consider having a smaller board or giving considerable weight to the nomination of highly educated directors to the board.
ISSN: 1792-7552 (Online)