Does R&D Mediate the Link Between Corporate Governance and Enterprise Value? Evidence From Family Firms Across Jurisdictional Contexts

ABSTRACT This study examines the mediating effect of R&D investment on the relationship between corporate governance and enterprise value, considering ownership (i.e., family vs . non‐family firms) and jurisdictional differences (i.e., common law vs. civil law). Using a multinational sample from 2009 to 2018, this study reveals that R&D negatively and partially mediates the relationship between corporate governance and enterprise value, with a more substantial effect in family firms within a civil law context. This supports the assumption that family firms are more conservative towards R&D investment. This study highlights the need for strategic decision‐making to consider ownership differences and legal context in shaping enterprise value.