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This study investigates whether the education level of a firm's directors significantly influences R&D investment, dependent on the moderating effects of institutional ownership, family involvement and control type. Based on a longitudinal sample of 437 Taiwanese listed firms over the period 2006–2012, we conclude that the education of directors does affect on a firm's R&D investment, and suggest that higher education of directors leads a firm to invest more in R&D. Moreover, internal corporate governance plays a moderating role in the relation between education of directors and R&D investment. Professional management strengthens the positive effect of education of directors on R&D investment, but institutional ownership or family involvement undermines this relationship. Finally, this study further reveals that cross-sectional heterogeneity in R&D investment depends on industry and control type.
Kuo et al. (2017) studied this question.