We examine the relationship between political uncertainty and R&D investment by exploiting the timing of U.S. gubernatorial elections as a source of plausibly exogenous variation in uncertainty. In contrast to the literature documenting negative effects of political uncertainty on real...

Using a large panel of US companies, I document that firms that rely more on arm's length financing such as public debt and equity, innovate more and have higher quality innovations, than firms that use other sources, such as relationship bank financing. I hypothesize that one possible reason...

We hypothesize that public firms that create novel innovations rely more on arm's length financing (equity and public debt) than on relationship based bank financing. A primary reason is that banks, unable to evaluate novel technologies, will tend to discourage investing in innovative projects...

This study argues that developed capital markets, through their monitoring and disciplining role, can significantly influence innovation and economic growth. Specifically, it examines how strong corporate governance proxied by the threat of hostile takeovers affects innovation. It uses a panel...

Using staggered changes in state corporate income tax rates, we document that firms are more likely to undertake an acquisition and pay cash for it when taxes increase. The likelihood is greater for financially constrained firms. We find no change in the CAR and takeover premia after tax...

Contrary to the previous literature, we document that winning a prestigious CEO award can be beneficial to firms by reducing managerial career concerns and encouraging long-term productivity. Using propensity score matching techniques, we find that award-winning CEOs innovate more than the...