Journal ArticleDOI
Non-Executive Employee Stock Options and Corporate Innovation
TLDR
In this paper, the authors provide empirical evidence on the positive effect of non-executive employee stock options on corporate innovation and find that stock options foster innovation mainly through the risk-taking incentive, rather than the performance-based incentive created by stock options.Abstract:
We provide empirical evidence on the positive effect of non-executive employee stock options on corporate innovation. The positive effect is more pronounced when employees are more important for innovation, when free-riding among employees is weaker, when options are granted broadly to most employees, when the average expiration period of options is longer, and when employee stock ownership is lower. Further analysis reveals that employee stock options foster innovation mainly through the risk-taking incentive, rather than the performance-based incentive created by stock options.read more
Citations
More filters
Journal ArticleDOI
Corporate Innovation Along the Supply Chain
TL;DR: Findings suggest that the feedback channel and the demand channel are likely underlying mechanisms through which supplier–customer proximity affects supplier innovation.
Journal ArticleDOI
Finance and Corporate Innovation: A Survey
TL;DR: In this article, the authors provide a synthetic and evaluative monograph of academic papers that examine the drivers and financing sources of corporate innovation, and provide a survey of the top three finance journals that published a total of only five papers on corporate innovation from 2000 to 2008, the number of such papers published by these three journals skyrocketed to 56 from 2009 to the third quarter of 2017.
Journal ArticleDOI
Be nice to your innovators: employee treatment and corporate innovation performance
TL;DR: In this article, the authors investigate the effect that employee treatment schemes have on corporate innovation performance and find that firms with better treatment schemes produce more and better patents through improving employee satisfaction and teamwork.
Journal ArticleDOI
Does Managerial Skill Facilitate Corporate Innovative Success
TL;DR: In this paper, the authors examine whether managerial ability facilitates corporate innovative success and find that managerial ability is positively associated with innovative output. But, the positive association between managerial ability and innovative output is weaker for older CEOs and managers who stay in the same job for longer, suggesting a preference for a "quiet life" by long serving CEOs.
Journal ArticleDOI
Do Corporate Policies Follow a Life-Cycle?
TL;DR: In this paper, the authors examine whether corporate investment, financing, and cash policies are interdependent and follow a predictable pattern in line with the firm life-cycle, and they find that investments and equity issuance decrease with firm life cycle, while debt issuance and cash holdings increase in the introduction and growth stages and decrease in the mature and shake-out/decline stages of the firm's life cycle.
References
More filters
Journal ArticleDOI
Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?
Steven N. Kaplan,Luigi Zingales +1 more
TL;DR: In this article, the authors investigated the relationship between financing constraints and investment-cash flow sensitivities by analyzing the firms identified by Fazzari, Hubbard, and Petersen as having unusually high investment cash flow sensitivity.
Book
Central problems in the management of innovation
TL;DR: Innovation is defined as "the development and implementation of new ideas by people who over time engage in transactions with others within an institutional order" as mentioned in this paper, where the authors focus on four basic factors new ideas, people, transactions, and institutional context.
Journal ArticleDOI
The Determinants of Firms' Hedging Policies
Clifford W. Smith,René M. Stulz +1 more
TL;DR: In this article, the authors develop a positive theory of the hedging behavior of value-maximizing corporations, treating hedging by corporations simply as one part of the firm's financing decisions.
Posted Content
Market value and patent citations
TL;DR: Hall et al. as mentioned in this paper explored the usefulness of patent citations as a measure of the "importance" of a firm's patents, as indicated by the stock market valuation of the firm's intangible stock of knowledge.
Journal ArticleDOI
Enjoying the Quiet Life? Corporate Governance and Managerial Preferences
TL;DR: The authors used variation in corporate governance generated by state adoption of antitakeover laws to empirically map out managerial preferences and find that when managers are insulated from takeovers, worker wages (especially those of white-collar workers) rise.