THE INFLUENCE OF CORPORATE GOVERNANCE ON INNOVATION DIMENSIONS - CASE STUDY OF EUROPEAN EMERGENT COUNTRIES

In the context of continuous transformation and development of the corporate sector in emergent and developed countries, the different approaches of corporate governance and innovation have attracted attention of researchers, legislators and practitioners. The main purpose of this paper is to identify the possible influence of corporate governance on the companies' innovation activities, considering four representative dimensions in the case of each analyzed concept. In this regard, the paper proposes two informational indicators: corporate governance index and innovation index, using a dataset provided by World Bank Database for 26 European emergent countries. Using the generalized linear model framework in order to test the relationship between these two indicators, the main result of this paper highlights that corporate governance have a significant impact on companies' innovation activities in case of selected countries.