An Econometric Analysis on the Effect of the Boards'and the CEO's characteristics on Firms’ R&D activities in the Japanese Machinery Industry

トリシマリヤクカイ オヨビ シャチョウ ノ ゾクセイ ト キギョウ ノ ケンキュウ カイハツ コウドウ : コクナイ キカイ サンギョウ ノ トッキョ データ ニヨル ケイリョウ ブンセキ

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社長

Board Size Effect仮説

Provision of Resourcefunction仮説

エントレンチメント効果

操作変数法

It is widely considered that the characteristics of the decision-makers may affect the behaviors of the firms in Business Economics. However, many aspects of the effects of the Boards' and the CEO's characteristics on Firms’ R&D activities remain poorly understood. Thus, in this paper, we tackle this puzzle with econometric approach based on“board size effect hypothesis” and “Provision of Resource function hypothesis”, utilizing a data of Japanese machinery industry . From our empirical study, we find the significant negative relationship between board size and the number of patent application in firm. We also obtain the significant positive effects of the proxies “, whether the Board and the CEO are R&D-oriented or not”on R&D behaviors of firms with several instrumental methods. Additionally, we show the significant result on several independent variables“, CEO’s tenure”“, CEO’s age”and “the ratio of the outside directors to the board member” conformed to our hypotheses in our econometric models. Finally, from above results, we conclude that the Boards' and the CEO's characteristics affect Firms’ R&D activities such as the number of patent application in Japanese machinery industry.