R&D narrative disclosure, corporate governance and market value: evidence from France

Mehdi Nekhili; Khaled Hussainey; Walid Cheffi; Tawhid Chtioui; Hubert Tchakoute-tchuigoua

R&D narrative disclosure, corporate governance and market value: evidence from France

Mehdi Nekhili, Khaled Hussainey, Walid Cheffi, Tawhid Chtioui, Hubert Tchakoute-tchuigoua

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Abstract

We investigate the impact of R&D narrative disclosure on the market value of equity for a sample of French companies during the period 2000–2004. Using 3SLS estimation on a panel data of 98 French firms, we find, ceteris paribus, positive (but insignificant) association between R&D voluntary disclosure and the market value of equity. Both R&D intensity and R&D capitalization lead French firms to disclose more R&D narrative information. However, they impact differently the relationship between R&D-related disclosure and market value. Indeed, a positive and significant association is found when we control for R&D capitalization. In contrast, when controlling for R&D intensity, we find a negative association. We also find that equity-based compensation and audit committee independence are the most important drivers for R&D narrative disclosure.

Original language	English
Pages (from-to)	111-128
Journal	Journal of Applied Business Research
Volume	32
Issue number	1
Early online date	6 Jan 2016
Publication status	Published - Jan 2016

Keywords

research and development
voluntary disclosure
market value
corporate governance

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The final, definitive version of this paper has been published in Journal of Applied Business Research DOI: 10.19030/jabr.v32i1.9527 . All rights reserved. ©The Author(s)
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AU - Tchakoute-tchuigoua, Hubert

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R&D narrative disclosure, corporate governance and market value: evidence from France

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