Corporate innovation is an increasingly important topic that has attracted great attention from academic researchers in financial economics in recent years. Although the top three finance journals (i.e. the Journal of Finance, the Journal of Financial Economics, and the Review of Financial...

We investigate how CEO's risk incentive (vega) affects firm innovation. To establish causality, we exploit compensation changes instigated by the FAS 123R accounting regulation in 2005 that mandated stock option expensing at fair values. Our identification tests indicate a positive and causal...

Using Hoberg, Phillips and Prabhala's (2014) product market fluidity to capture competitive threats, we find that firms with high product market threats will invest more in R&D and generate higher number of patents and patent citations. In addition, this positive effect of competitive threats on...

Familienunternehmen gelten in der öffentlichen Wahrnehmung als besonders innovativ und als "Hidden Champions" der deutschen Wirtschaft. In jüngster Zeit widmen sich Forscher vermehrt der Überprüfung dieser These und kommen zu diametral unterschiedlichen Ergebnissen. Einerseits wird...

This paper studies whether board connectedness affects corporate innovation. We find that well-connected boards have a positive impact on innovation activities and quality. The effect is stronger when firms have higher advising demand or face more severe agency problems. We show that the...

This study investigates the impact of air pollution on corporate innovation. Using the satellite generated Particulate Matter 2.5 concentration data in 390 cities in China over the period of 2000-2015, we find that severe air pollution (haze pollution) in a region may deteriorate the innovative...

We show evidence that female board representation is associated with greater innovative success, and thus enhances firm performance in innovation-intensive industries. Firms with female directors tend to invest more in innovation and obtain more patents and citations for given R&D expenditures....