https://scholars.lib.ntu.edu.tw/handle/123456789/608008
Title: | Staggered boards and product innovations: Evidence from Massachusetts State Bill HB 5640 | Authors: | Chen I.-J Hsu P.-H YAN-ZHI WANG |
Keywords: | Massachusetts;Product innovations;Product patents;Staggered board;Trademarks;Laws and legislation;Advertising expenditures;Governance structures;High-tech firms;Institutional ownerships;Legislation changes;Natural experiment;Product innovation;Product patent;Patents and inventions | Issue Date: | 2022 | Journal Volume: | 51 | Journal Issue: | 4 | Source: | Research Policy | Abstract: | In this paper, we empirically investigate how staggered boards, a prevailing governance structure of high-tech firms, influence firms’ product innovations in the United States. We explore a quasi-natural experiment of a legislation change in Massachusetts that forced the adoption of staggered boards in 1990 for the causal effect of staggered boards. We find that, when compared with firms in other states, Massachusetts-incorporated firms without staggered boards before 1990 perform better with respect to product innovations once they adopt staggered boards after 1990. The positive effect of staggered boards on product innovations is stronger for firms with higher takeover vulnerability, with higher institutional ownership, and in industries with higher advertising expenditures. Such a positive effect is consistent with staggered boards’ long-term orientation and is further confirmed by treated firms’ better product quality after 1990. ? 2022 |
URI: | https://www.scopus.com/inward/record.uri?eid=2-s2.0-85123626224&doi=10.1016%2fj.respol.2022.104475&partnerID=40&md5=f54abe810c382e05fe4bfdce41c6fa21 https://scholars.lib.ntu.edu.tw/handle/123456789/608008 |
ISSN: | 00487333 | DOI: | 10.1016/j.respol.2022.104475 |
Appears in Collections: | 財務金融學系 |
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