Does directors’ educational background influence financing innovation through corporate venture capital investments? Evidence from France

Abstract

This study examines whether directors’ educational background influences financing innovation through corporate venture capital (CVC). Our study comprises all CVC operations undertaken by French companies listed on the SBF 120 index between 2000 and 2018. The results show that directors who have graduated from elitist institutions strengthen the involvement of companies in financing innovation. We also find that female directors with a background in management enhance such strategies. These findings have several practical implications for managers and regulators. Thus, to ensure the involvement of corporates in financing innovation, the appointment of directors should be based on specific criteria.