Studies on capital structure show that firms with below-target debt are more willing to raise debt (if needed) compared to firms with above-target debt. In this paper, I examine how capital structure decisions affect R&D investment policies and firm innovation. I show that firms with...

Studies on capital structure show that firms with below-target debt are more willing to raise debt (if needed) compared to firms with above-target debt. In this paper, I examine how capital structure adjustments affect firm innovation. I show that firms with below-target debt (willing to raise...

Monitoring by institutional investors can act as an important mechanism to promote firm innovation. By investigating Chinese listed firms' patenting between 2002 and 2011, we find that the presence of institutional investors enhances firm innovation. Consistent with the monitoring view, we...

We find evidence that chief executive officers' (CEOs') hobby of flying airplanes is associated with significantly better innovation outcomes, measured by patents and citations, greater innovation effectiveness, and more diverse and original patents. We rule out alternative explanations, leading...

This research aims at investigating the impact of innovation activities and its determinants on firm performance. The World Bank and the European Bank for Reconstruction and Development (EBRD) have conducted Business Environment Enterprise Performance Surveys (BEEPS) firm-level data in...

This paper investigates whether the proximity between mutual funds and their investments could explain corporate innovation. I find that mutual funds investing in local firms increase firms' R&D expenditure and productivity. More importantly, firms with greater local ownership produce more...

Using data on birthplaces of 2,065 CEOs and a local measure of cultural individualism based on the westward expansion in American history, I find a positive relation between CEO cultural individualism and corporate innovation. Firms with individualistic CEOs file more patents and receive more...

Using a recent sample of hi-tech Chinese small and medium-size enterprises (SMEs), we examine whether family-owned businesses (FBs) can show better innovative productivity than non-FBs. We find that family firms produce a higher level of innovative productivity, consuming less innovation input...

This paper investigates the effect that employee treatment schemes have on corporate innovation performance. We find that firms with better employee treatment schemes produce more and better patents through improving employee satisfaction and teamwork. Additional tests suggest that our main...

This study investigates why newly listed firms become M&A targets shortly after their initial public offering (IPOs) from the perspective of product innovation. We find strong empirical evidence that IPOs with less established trademarks increase the likelihood of becoming IPO targets. We also...