R&D Narrative Disclosure, Corporate Governance And Market Value: Evidence From France

Mehdi Nekhili, Khaled Hussainey, Walid Cheffi, Tawhid Chtioui, Hubert Tchakoute-Tchuigoua
2015 Journal of Applied Business Research  
<p>We investigate the impact of R&amp;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&amp;D voluntary disclosure and the market value of equity. Both R&amp;D intensity and R&amp;D capitalization lead French firms to disclose more R&amp;D narrative information. However, they impact differently the
more » ... relationship between R&amp;D-related disclosure and market value. Indeed, a positive and significant association is found when we control for R&amp;D capitalization. In contrast, when controlling for R&amp;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&amp;D narrative disclosure. </p>
doi:10.19030/jabr.v32i1.9527 fatcat:5zw35q42dfeuzhbfto5ofcqbxy