Impact of board characteristics and gender diversity on research and development spending in Jordan

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This study undertakes an investigation into the nexus between board characteristics and research and development (R&D) investments within the specific context of Jordan. Employing a dataset comprising 24 small and medium enterprises (SMEs) operating in the service and manufacturing sectors and enlisted on the Amman Stock Exchange (ASE) throughout the period from 2010 to 2023, the empirical findings substantiate that the dimensions of the board, mainly board size and independence, exert a positive influence on the intensity of R&D expenditures. However, gender diversity exerts an inverse impact on R&D spending. Consequently, organizations with a tendency toward sustaining innovation endeavors are encouraged to accord heightened consideration to fostering gender diversity during the board selection process. However, CEO duality reveals an insignificant influence on R&D expenditures. To conclude, the study’s outcomes enrich the existing array of findings on the influence of women directors on board independence, particularly in R&D spending. Furthermore, the study offers policy recommendations, enhancing comprehension of the influence of women’s representation on R&D spending.

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    • Table 1. Descriptive statistics
    • Table 2. Variable definitions
    • Table 3. Correlation matrix
    • Table 4. VIF figures
    • Table 5. Regression of the association between board characteristics and R&D investment using 2SLS
    • Table A1. Sampled companies
    • Conceptualization
      Dua’a Shubita, Majd Munir Iskandrani, Hadeel Boshmaf, Hadeel Yaseen
    • Data curation
      Dua’a Shubita
    • Funding acquisition
      Dua’a Shubita
    • Investigation
      Dua’a Shubita
    • Methodology
      Dua’a Shubita, Majd Munir Iskandrani
    • Supervision
      Dua’a Shubita
    • Writing – original draft
      Dua’a Shubita, Majd Munir Iskandrani
    • Formal Analysis
      Majd Munir Iskandrani
    • Resources
      Hadeel Boshmaf, Hadeel Yaseen
    • Validation
      Hadeel Boshmaf, Hadeel Yaseen, Mohammad Fawzi Shubita
    • Writing – review & editing
      Hadeel Boshmaf, Hadeel Yaseen, Mohammad Fawzi Shubita
    • Software
      Mohammad Fawzi Shubita
    • Visualization
      Mohammad Fawzi Shubita