The Mediating Effect of Innovation on the Relationship Between Corporate Governance and Firm Performance: Evidence from Developed and Developing Countries

Main Article Content

Ploypailin Kijkasiwat
Anwar Hussain
Uzma Nisar
Chee Yoong Liew


Prior studies have shown that innovation has a mediating effect on the relationship between corporate governance and firm performance. This study compares this mediating effect in developed and developing countries using agency theory and signaling theory. A panel sample of 2,688 firms in developing and developed countries is analysed for the period of 2002–2017. The empirical findings demonstrate that corporate innovation fully mediates the relationship between corporate governance and firm performance in developed countries. However, innovation partially mediates the relationship between corporate governance and firm performance in developing countries. This could be because of different socioeconomic factors and capabilities of innovators involved in corporate governance structure. The study has both theoretical and policy implications and provides insights for policy makers for identifying the influence of innovation on firm value and evaluating the importance of corporate governance. 

Article Details

How to Cite
Ploypailin Kijkasiwat, Anwar Hussain, Uzma Nisar, & Chee Yoong Liew. (2024). The Mediating Effect of Innovation on the Relationship Between Corporate Governance and Firm Performance: Evidence from Developed and Developing Countries. Asian Academy of Management Journal, 29(1), 55–93.
Original Articles


Adedeji, B. S., Ong, T. S., Uzir, M. U. H., & Abdul Hamid, A. B. (2020). Corporate governance and performance of medium-sized firms in Nigeria: Does sustainability initiative matter? Corporate Governance, 20(3), 401–427.

Agarwal, R., Campbell, B. A., Franco, A. M., & Ganco, M. (2016). What do I take with me? The mediating effect of spin-out team size and tenure on the founder-firm performance relationship. Academy of Management Journal, 59(3), 1060–1087.

Ali, W., Frynas, J. G., & Mahmood, Z. (2017). Determinants of corporate social responsibility (CSR) disclosure in developed and developing countries: A literature review. Corporate Social Responsibility and Environmental Management, 24(4), 273–294.

Alnabsha, A., Abdou, H. A., Ntim, C. G., & Elamer, A. A. (2018). Corporate boards, ownership structures and corporate disclosures: Evidence from a developing country. Journal of Applied Accounting Research, 19(1), 20–41.

Alsayegh, M. F., Abdul Rahman, R., & Homayoun, S. (2020). Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure. Sustainability, 12(9), 3910.

Anning-Dorson, T. (2018). Innovation and competitive advantage creation. International Marketing Review, 35(4), 580–600.

Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58(2), 277–297.

Audretsch, D., Sanders, M., & Zhang, L. (2021). International product life cycles, trade and development stages. The Journal of Technology Transfer, 46(5), 1630–1673.

Awasthi, K. (2017). Taking stock of the principal-principal agency perspective: A review and the way ahead. International Business Strategy, 17–42.

Azila-Gbettor, E. M., Honyenuga, B. Q., Berent-Braun, M. M., & Kil, A. (2018). Structural aspects of corporate governance and family firm performance: A systematic review. Journal of Family Business Management, 8(3), 306–330.

Bae, S. M., Masud, M., Kaium, A., & Kim, J. D. (2018). A cross-country investigation of corporate governance and corporate sustainability disclosure: A signaling theory perspective. Sustainability, 10(8), 2611.

Baldwin, J. R., & Gellatly, G. (2003). Innovation strategies and performance in small firms. Edward Elgar Publishing.

Balsmeier, B., Fleming, L., & Manso, G. (2017). Independent boards and innovation. Journal of Financial Economics, 123(3), 536–557.

Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variables distinction in social psychological research: Conceptual, strategic and statistical consideration. Journal of Personality and Social Psychology, 51(6), 1173–1182.

Bennouri, M., Chtioui, T., Nagati, H., & Nekhili, M. (2018). Female board directorship and firm performance: What really matters? Journal of Banking and Finance, 88, 267–291.

Bernile, G., Bhagwat, V., & Yonker, S. (2018). Board diversity, firm risk, and corporate policies. Journal of Financial Economics, 127(3), 588–612.

Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257–273.

Bhatia, A., & Makkar, B. (2019). CSR disclosure in developing and developed countries: A comparative study. Journal of Global Responsibility, 11(1), 1–26.

Bhatt, P. R., & Bhatt, R. R. (2017). Corporate governance and firm performance in Malaysia. Corporate Governance: The International Journal of Business in Society, 17(5), 896–912.

Bianchini, S., Krafft, J., Quatraro, F., & Ravix, J. L. (2018). Corporate governance and innovation: Does firm age matter? Industrial and Corporate Change, 27(2), 349–370.

Bird, R., Huang, P., & Lu, Y. (2018). Board independence and the variability of firm performance: Evidence from an exogenous regulatory shock. Australian Journal of Management, 43(1), 3–26.

Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143.

Buallay, A., Hamdan, A., & Zureigat, Q. (2017). Corporate governance and firm performance: Evidence from Saudi Arabia. Australasian Accounting, Business and Finance Journal, 11(1), 78–98.

Buertey, S., & Pae, H. (2021). Corporate governance and forward-looking information disclosure: Evidence from a developing country. Journal of African Business, 22(3), 293–308.

Burrus, R. T., Graham, J. E., & Jones, A. T. (2018). Regional innovation and firm performance. Journal of Business Research, 88, 357–362.

Catalyst. (2004). The bottom line: Connecting corporate performance and gender diversity.

Catalyst. Chbib, I., & Page, M. (2020). Board composition and firm performance: The case of FTSE all shares. IUP Journal of Corporate Governance, 19(1), 7–27.

Chege, S. M., Wang, D., & Suntu, S. L. (2020). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 26(2), 316–345.

Chen, Y., & Jermias, J. (2014). Business strategy, executive compensation and firm performance. Accounting and Finance, 54(1), 113–134.

Choi, J. J., Park, S. W., & Yoo, S. S. (2007). The value of outside directors: Evidence from corporate governance reform in Korea. Journal of Financial and Quantitative Analysis, 42(4), 941–962.

Ciftci, I., Tatoglu, E., Wood, G., Demirbag, M., & Zaim, S. (2019). Corporate governance and firm performance in emerging markets: Evidence from Turkey. International Business Review, 28(1), 90–103.

Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4–5), 303–327.

Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67.

Danoshana, S., & Ravivathani, T. (2019). The impact of the corporate governance on firm performance: A study on financial institutions in Sri Lanka. SAARJ Journal on Banking and Insurance Research, 8(1), 62–67.

Das, N. C., Chowdhury, M. A. F., & Islam, M. N. (2022). The heterogeneous impact of leverage on firm performance: Empirical evidence from Bangladesh. South Asian Journal of Business Studies, 11(2), 235–252.

Eagly, A. H. (2007). Female leadership advantage and disadvantage: Resolving the contradictions. Psychology of Women Quarterly, 31(1), 1–12.

Ehikioya, B. I. (2009). Corporate governance structure and firm performance in developing economies: Evidence from Nigeria. The International Journal of Business in Society, 9(3), 231–243.

Farah, B., Elias, R., Aguilera, R., & Abi Saad, E. (2021). Corporate governance in the Middle East and North Africa: A systematic review of current trends and opportunities for future research. Corporate Governance: An International Review, 29(6), 630–660.

Fernández-Sastre, J., & Montalvo-Quizhpi, F. (2019). The effect of developing countries’ innovation policies on firms’ decisions to invest in RandD. Technological Forecasting and Social Change, 143, 214–223.

Filatotchev, I., Poulsen, A., & Bell, R. G. (2019). Corporate governance of a multinational enterprise: Firm, industry and institutional perspectives. Journal of Corporate Finance, 57, 1–8.

Fosberg, R. H. (2004). Agency problems and debt financing: Leadership structure effects. Corporate Governance: The International Journal of Business in Society, 4(1), 31–38.

Gómez-Bolaños, E., Ellimäki, P., Hurtado-Torres, N. E., & Delgado-Márquez, B. L. (2022). Internationalization and environmental innovation in the energy sector: Exploring the differences between multinational enterprises from emerging and developed countries. Energy Policy, 163, 112867.

Gooderham, P., Minbaeva, D. B., & Pedersen, T. (2011). Governance mechanisms for the promotion of social capital for knowledge transfer in multinational corporations. Journal of Management Studies, 48(1), 123–250.

Green, C. P., & Homroy, S. (2018). Female directors, board committees and firm performance. European Economic Review, 102, 19–38.

Gudjonsson, S., Kristinsson, K., Gylfason, H. F., & Minelgaite, I. (2020). Female advantage? Management and financial performance in microfinance. Business: Theory and Practice, 21(1), 83–91.

Gujarati, D. N., & Sangeetha, (2007). Basic econometrics. Tata McGraw Hill.

Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal of Production Economics. 133(2), 662–676.

Haniffa, R., Rahman, R. A., & Ali, F. H. M. (2006). Board, audit committee, culture and earnings management: Malaysian evidence. Managerial Auditing Journal, 21(7), 783–804.

Haynes, K. T., & Hillman, A. (2010). The effect of board capital and CEO power on strategic change. Strategic Management Journal, 31(11), 1145–1163.

He, W., & Shen, R. (2019). ISO 14001 certification and corporate technological innovation: Evidence from Chinese firms. Journal of Business Ethics, 158(1), 97–117.

Huang, C. H., & Hou, T. C. T. (2019). Innovation, research and development, and firm profitability in Taiwan: Causality and determinants. International Review of Economics and Finance, 59, 385–394.

Humphries, S. A., & Whelan, C. (2017). National culture and corporate governance codes. Corporate Governance, 17(1), 152–163.

Huu Nguyen, A., Thuy Doan, D., & Ha Nguyen, L. (2020). Corporate governance and agency cost: Empirical evidence from Vietnam. Journal of Risk and Financial Management, 13(5), 103–118.

Iqbal, S., Nawaz, A., & Ehsan, S. (2019). Financial performance and corporate governance in microfinance: Evidence from Asia. Journal of Asian Economics, 60, 1–13.

Isidro, H., & Sobral, M. (2015). The effects of women on corporate boards on firm value, financial performance, and ethical and social compliance. Journal of Business Ethics, 132(1), 1–19.

Iyengar, R. J., & Sundararajan, M. (2020). Is firm innovation associated with corporate governance? International Journal of Innovation Management, 24(03), 2050027.

Jamil, A., Mohd Ghazali, N. A., & Puat Nelson, S. (2021). The influence of corporate governance structure on sustainability reporting in Malaysia. Social Responsibility Journal, 17(8), 1251-1278.

Jia, N., Huang, K. G., & Man Zhang, C. (2019). Public governance, corporate governance, and firm innovation: An examination of state-owned enterprises. Academy of Management Journal, 62(1), 220–247.

Kakabadse, N. K., Yang, H., & Sanders, R. (2010). The effectiveness of non-executive directors in Chinese state-owned enterprises. Management Decision, 48(7), 1063–1079.

Kao, M.-F., Hodgkinson, L., & Jaafar, A. (2019). Ownership structure, board of directors and firm performance: Evidence from Taiwan. Corporate Governance, 19(1), 189–216.

Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 114, 207–223.

Khan, S. N., Hussain, R. I., Maqbool, M. Q., Ali, E. I. E., & Numan, M. (2019). The mediating role of innovation between corporate governance and organizational performance: Moderating role of innovative culture in Pakistan textile sector. Cogent Business and Management, 6(1), 1–23.

Khanna, T., Kogan, J., & Palepu, K. (2006). Globalization and similarities in corporate governance: A cross-country analysis. Review of Economics and Statistics, 88(1), 69–90.

Kijkasiwat, P., & Phuensane, P. (2020). Innovation and firm performance: The moderating and mediating roles of firm size and small and medium enterprise finance. Journal of Risk and Financial Management, 13(5), 97. jrfm13050097

Krause, R., Semadeni, M., & Cannella Jr, A. A. (2014). CEO duality: A review and research agenda. Journal of Management, 40(1), 256–286.

Kumar, P. C., & Tsetsekos, G. P. (1999). The differentiation of emerging equity markets. Applied Financial Economics, 9(5), 443–453.

Kyere, M., & Ausloos, M. (2021). Corporate governance and firms financial performance in the United Kingdom. International Journal of Finance and Economics, 26(2), 1871–1885.

Lagasio, V., & Cucari, N. (2019). Corporate governance and environmental social governance disclosure: A meta‐analytical review. Corporate Social Responsibility and Environmental Management, 26(4), 701–711. csr.1716

Leung, T. Y., & Sharma, P. (2021). Differences in the impact of R&D intensity and R&D internationalization on firm performance: Mediating role of innovation performance. Journal of Business Research, 131, 81–91.

Lee, R., Lee, J. H., & Garrett, T. C. (2019). Synergy effects of innovation on firm performance. Journal of Business Research, 99, 507–515.

Li, C., Li, J., Liu, M., Wang, Y., & Wu, Z. (2017). Anti-misconduct policies, corporate governance and capital market responses: International evidence. Journal of International Financial Markets, Institutions and Money, 48, 47–60.

Liao, Z., Liu, P., & Liu, S. (2021). A meta-analysis of environmental innovation and firm performance. Journal of Environmental Planning and Management, 64(11), 2047–2065.

Liew, C. Y., Alfan, E., & Devi, S. (2015). Family firms, expropriation and firm value: Evidence from related party transactions in Malaysia. Journal of Developing Areas Special Issue, 49(5), 139–153.

Liew, C. Y., Alfan, E., & Devi, S. (2017). Family firms, expropriation and firm value: Evidence of the role of independent directors’ tenure in Malaysia. International Journal of Organizational Leadership, 6, 42–64. ijol.2017.60195

Liew, C. Y., & Devi, S. S. (2020). Family firms, banks and firm value: Evidence from Malaysia. Journal of Family Business Management, 11(1), 51–85.

Liew, C. Y., & Devi, S. S. (2022). Independent directors’ tenure, expropriation, related party transactions, and firm value: The role of ownership concentration in Malaysian publicly listed corporations. In Information Resources Management Association (Ed.), Research anthology on strategies for maintaining successful family firms (pp. 369–394). IGI Global.

Liew, C. Y., Ko, Y. K., Song, B. L., & Murthy, S. T. (2021). Directors’ remuneration, expropriation and firm performance in Malaysia: Evidence from non-executive directors’ service duration within the remuneration committee. International Journal of Business and Globalisation, 28(1–2), 117–147.

Liew, C. Y., Ko, Y., Song, B. L., & Murthy, S. T. (2022). Directors’ compensation, ownership concentration and the value of the firm: Evidence from an emerging market. Journal of Industrial and Business Economics, 49(1), 155–188.

Lööf, H., & Nabavi, P. (2016). Innovation and credit constraints: Evidence from Swedish exporting firms. Economics of Innovation and New Technology, 25(3), 269–282.

Lopez-Gracia, J., & Mestre-Barberá, R. (2015). On the relevance of agency conflicts in SME debt maturity structure. Journal of Small Business Management, 53(3), 714–734.

Low, D. C., Roberts, H., & Whiting, R. H. (2015). Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore. Pacific-Basin Finance Journal, 35, 381–401.

Lu, J., & Wang, W. (2018). Managerial conservatism, board independence and corporate innovation. Journal of Corporate Finance, 48, 1–16.

Mahmood, Z., Kouser, R., Ali, W., Ahmad, Z., & Salman, T. (2018). Does corporate governance affect sustainability disclosure? A mixed methods study. Sustainability, 10(1), 207–227.

Manogna, R. L., & Aswini Kumar, M. (2021). Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry. International Journal of Innovation Science, 13(2), 233–248.

Manrique, S., & Martí-Ballester, C. P. (2017). Analyzing the effect of corporate environmental performance on corporate financial performance in developed and developing countries. Sustainability, 9(11), 1957.

Maseda, A., Iturralde, T., & Arosa, B. (2015). Impact of outsiders on firm performance over different generations of family‐owned SMEs. Journal of Small Business Management, 53(4), 1203–1218.

McCabe, M., Nowak, M. (2008). The independent director on the board of company directors. Managerial Auditing Journal, 23(6), 545–566.

McGahan, A. M., & Silverman, B. S. (2001). How does innovative activity change as industries mature? International Journal of Industrial Organization, 19(7), 1141–1160.

McKelvie, A., Brattström, A., & Wennberg, K. (2017). How young firms achieve growth: Reconciling the roles of growth motivation and innovative activities. Small Business Economics, 49(2), 273–293.

Merendino, A., & Melville, R. (2019). The board of directors and firm performance: Empirical evidence from listed companies. Corporate Governance: The International Journal of Business in Society, 19(3), 508–551.

Mishra, S., & Mohanty, P. (2014). Corporate governance as a value driver for firm performance: Evidence from India. Corporate Governance, 14(2), 265–280.

Mohammad, W. M. W., Wasiuzzaman, S., & Salleh, N. M. Z. N. (2016). Board and audit committee effectiveness, ethnic diversification and earnings management: A study of the Malaysian manufacturing sector. Corporate Governance: An International Review, 16(4), 726–746.

Momin, M. A., & Parker, L. D. (2013). Motivations for corporate social responsibility reporting by MNC subsidiaries in an emerging country: The case of Bangladesh. The British Accounting Review, 45(3), 215–228.

Mubeen, R., Han, D., Abbas, J., & Hussain, I. (2020). The effects of market competition, capital structure, and CEO duality on firm performance: A mediation analysis by incorporating the GMM model technique. Sustainability, 12(8), 3480.

Mulili, B. M., & Wong, P. (2011). Corporate governance practices in developing countries: The case for Kenya. International Journal of Business Administration, 2(1), 14–27.

Muttakin, M. B., Mihret, D. G., & Khan, A. (2018). Corporate political connection and corporate social responsibility disclosures: A neo-pluralist hypothesis and empirical evidence. Accounting, Auditing and Accountability Journal, 31(2), 725–744.

Nicholson, G. J., & Kiel, G. C. (2007). Can directors impact performance? A case- based test of three theories of corporate governance. Corporate Governance: An International Review, 15(4), 585–608.

Nielsen, L. (2011). Classifications of countries based on their level of development: How it is done and how it could be done. IMF Working Paper No. WP/11/31, 1–46.

Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74–95.

Paniagua, J., Rivelles, R., & Sapena, J. (2018). Corporate governance and financial performance: The role of ownership and board structure. Journal of Business Research, 89, 229–234.

Pekovic, S., Lojpur, A., & Pejic-Bach, M. (2015). Determinants of innovation intensity in developed and in developing economies: The case of France and Croatia. International Journal of Innovation Management, 19(05), 1550049.

Pillai, R., & Al-Malkawi, H. A. N. (2018). On the relationship between corporate governance and firm performance: Evidence from GCC countries. Research in International Business and Finance, 44, 394–410.

Puni, A., & Anlesinya, A. (2020). Corporate governance mechanisms and firm performance in a developing country. International Journal of Law and Management, 62(2), 147–169.

Rashid, K. (2008). A comparison of corporate governance and firm performance in developing (Malaysia) and developed (Australia) financial markets. Doctoral dissertation, Victoria University.

Reijonen, H., & Komppula, R. (2007). Perception of success and its effect on small firm performance. Journal of Small Business and Enterprise Development, 14(4), 689–701.

Rejeb, W. B., Berraies, S., & Talbi, D. (2019). The contribution of board of directors’ roles to ambidextrous innovation. European Journal of Innovation Management, 23(1), 40–66.

Riaz, S., Khan, A. H., & Shaheen, M. (2017). Relationship between board size and firm performance: Intervening role of policies. Bulletin of Business and Economics, 6(3), 130–140.

Richardson, S. (2006). Over-investment of free cash flow. Review of Accounting Studies, 11(2), 159–189.

Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86–136.

Sarpong-Danquah, B., Gyimah, P., Afriyie, R. O., & Asiamah, A. (2018). Corporate governance and firm performance: An empirical analysis of manufacturing listed firms in Ghana. Accounting and Finance Research, 7(3), 111–118.

Shah, S. Z. A., Liang, S., & Akbar, S. (2013). International Financial Reporting Standards and the value relevance of R&D expenditures: Pre and post IFRS analysis. International Review of Financial Analysis, 30, 158–169.

Shahzad, F., Ahmad, M., Fareed, Z., & Wang, Z. (2022). Innovation decisions through firm life cycle: A new evidence from emerging markets. International Review of Economics and Finance, 78, 51–67.

Shi, W., Connelly, B. L., & Hoskisson, R. E. (2017). External corporate governance and financial fraud: Cognitive evaluation theory insights on agency theory prescriptions. Strategic Management Journal, 38(6), 1268–1286.

Shu, C., Zhao, M., Liu, J., & Lindsay, W. (2020). Why firms go green and how green impacts financial and innovation performance differently: An awareness- motivation-capability perspective. Asia Pacific Journal of Management, 37(3), 795–821.

Teece, D. J. (2010). Technological innovation and the theory of the firm: The role of enterprise-level knowledge, complementarities, and (dynamic) capabilities. In B. H. Hall, & N. Rosenberg (Eds.), Handbook of the economics of innovation (vol. 1, pp. 679–730). North-Holland.

Tariq, A., Badir, Y. F., Safdar, U., Tariq, W., & Badar, K. (2019). Linking firms’ life cycle, capabilities, and green innovation. Journal of Manufacturing Technology Management, 13(2), 284–305.

Terjesen, S., Couto, E. B., & Francisco, P. M. (2016). Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity. Journal of Management and Governance, 20(3), 447–483.

Tuliao, K. V., & Chen, C. W. (2017). CEO duality and bribery: The roles of gender and national culture. Management Decision, 55(1), 218–231. MD-12-2015-0608

Tulung, J. E., & Ramdani, D. (2018). Independence, size and performance of the board: An emerging market research. Corporate Ownership and Control, 15(2), 201–208.

Tung, L. T., & Binh, Q. M. Q. (2021). The impact of RandD expenditure on firm performance in emerging markets: Evidence from the Vietnamese listed companies. Asian Journal of Technology Innovation, 1–19. 1.1897470

Udin, S., Khan, M. A., & Javid, A. Y. (2017). The effects of ownership structure on likelihood of financial distress: An empirical evidence. Corporate Governance: The International Journal of Business in Society, 17(4), 589–612.

Ullah, M. H. & Rahman, M. A. (2015). Corporate social responsibility reporting practices in banking companies in Bangladesh: Impact of regulatory change. Journal of Financial Reporting and Accounting, 13(2), 200–225.

Umrani, A. I., Johl, S. K., & Ibrahim, M. Y. (2017). Ownership structure attributes, outside board members and SMEs firm performance with mediating effect of innovation in Malaysia. Global Business and Management Research, 9(1s), 393–402.

Utama, C. A., & Utama, S. (2019). Board of commissioners in corporate governance, firm performance, and ownership structure. International Research Journal of Business Studies, 12(2), 111–136.

Uribe-Bohorquez, M. V., Martínez-Ferrero, J., & García-Sánchez, I. M. (2018). Board independence and firm performance: The moderating effect of institutional context. Journal of Business Research, 88, 28–43.

Van Hiel, A., Van Assche, J., De Cremer, D., Onraet, E., Bostyn, D., Haesevoets, T., & Roets, A. (2018). Can education change the world? Education amplifies differences in liberalization values and innovation between developed and developing countries. PLoS ONE, 13(6), 1–8.

Xia, L., Gao, S., Wei, J., & Ding, Q. (2022). Government subsidy and corporate green innovation: Does board governance play a role? Energy Policy, 161, 1–15.

Wellalage, N. H., & Fernandez, V. (2019). Innovation and SME finance: Evidence from developing countries. International Review of Financial Analysis, 66, 101370.

Widiatmoko, J., Indarti, M. G. K., & Pamungkas, I. D. (2020). Corporate governance on intellectual capital disclosure and market capitalization. Cogent Business and Management, 7(1), 1–14.

Wijethilake, C., & Ekanayake, A. (2019). CEO duality and firm performance: The moderating roles of CEO informal power and board involvements. Social Responsibility Journal, 16(8), 1453–1474.

Woudstra, U., Berghout, E., Tan, C. W., van Eekeren, P., & Dedene, G. (2017). Resource complementarity and IT economies of scale: Mechanisms and empirical evidence. Information Systems Management, 34(2), 185–199.

Wu, T. H., Ting, P. J. L., Lin, M. C., & Chang, C. C. (2020). Corporate ownership and firm performance: a mediating role of innovation efficiency. Economics of Innovation and New Technology, 31(4), 292–319.

Yang, D., Jiao, H., & Buckland, R. (2017). The determinants of financial fraud in Chinese firms: Does corporate governance as an institutional innovation matter? Technological Forecasting and Social Change, 125, 309–320.

Yasser, Q. R., Al Mamun, A., & Suriya, A. R. (2015). CEO duality structure and firm performance in Pakistan. Asian Journal of Accounting and Governance, 5, 57–69.

Yasser, Q. R., Entebang, H. A., & Mansor, S. A. (2011). Corporate governance and firm performance in Pakistan: The case of Karachi Stock Exchange (KSE)-30. Journal of Economics and International Finance, 3(8), 482–491.

Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40(2), 185–211. 405X(95)00844-5

Yi, J., Hong, J., Chung Hsu, W., & Wang, C. (2017). The role of state ownership and institutions in the innovation performance of emerging market enterprises: Evidence from China. Technovation, 62, 4–13.

Yusuf, F., Yousaf, A., & Saeed, A. (2018, December). Rethinking agency theory in developing countries: A case study of Pakistan. Accounting Forum, 42(4), 281–292.

Zhang, Q., & Ma, Y. (2021). The impact of environmental management on firm economic performance: The mediating effect of green innovation and the moderating effect of environmental leadership. Journal of Cleaner Production, 292, 126057.

Zhang, Y., Zhang, J., & Cheng, Z. (2021). Stock market liberalization and corporate green innovation: Evidence from China. International Journal of Environmental Research and Public Health, 18(7), 3412.

Zhou, K. Z., Gao, G. Y., & Zhao, H. (2017). State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2), 375–404.