Friendly boards and innovation
We examine how friendly boards affect firm innovation. Using CEO-director social connections as a measure of board friendliness, we find that firms with friendly boards create more patents and citations. The positive relation between friendly boards and innovation are more pronounced when firms’ adv...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2019
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/86206 http://hdl.handle.net/10220/48301 |
| _version_ | 1826115693947387904 |
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| author | Zhang, Le Kang, Jun-Koo Liu, Wei-Lin Low, Angie |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Zhang, Le Kang, Jun-Koo Liu, Wei-Lin Low, Angie |
| author_sort | Zhang, Le |
| collection | NTU |
| description | We examine how friendly boards affect firm innovation. Using CEO-director social connections as a measure of board friendliness, we find that firms with friendly boards create more patents and citations. The positive relation between friendly boards and innovation are more pronounced when firms’ advisory needs are higher or when firms operate in innovative industries. Friendly boards are also associated with higher firm value, especially when firms have higher advisory needs or when innovation is an important source of firm value. Our results support the positive view on a friendly board perspective that directors serve as valuable advisors to CEOs. |
| first_indexed | 2024-10-01T03:59:20Z |
| format | Journal Article |
| id | ntu-10356/86206 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:59:20Z |
| publishDate | 2019 |
| record_format | dspace |
| spelling | ntu-10356/862062023-05-19T06:44:41Z Friendly boards and innovation Zhang, Le Kang, Jun-Koo Liu, Wei-Lin Low, Angie Nanyang Business School Board Of Directors Corporate Innovation DRNTU::Business::Finance We examine how friendly boards affect firm innovation. Using CEO-director social connections as a measure of board friendliness, we find that firms with friendly boards create more patents and citations. The positive relation between friendly boards and innovation are more pronounced when firms’ advisory needs are higher or when firms operate in innovative industries. Friendly boards are also associated with higher firm value, especially when firms have higher advisory needs or when innovation is an important source of firm value. Our results support the positive view on a friendly board perspective that directors serve as valuable advisors to CEOs. Accepted version 2019-05-22T01:16:41Z 2019-12-06T16:18:02Z 2019-05-22T01:16:41Z 2019-12-06T16:18:02Z 2018 Journal Article Kang, J.-K., Liu, W.-L., Low, A., & Zhang, L. (2018). Friendly boards and innovation. Journal of Empirical Finance, 45, 1-25. doi:10.1016/j.jempfin.2017.09.007 0927-5398 https://hdl.handle.net/10356/86206 http://hdl.handle.net/10220/48301 10.1016/j.jempfin.2017.09.007 en Journal of Empirical Finance © 2017 Elsevier B. V. All rights reserved. This paper was published in Journal of Empirical Finance and is made available with permission of Elsevier B. V. 56 p. application/pdf |
| spellingShingle | Board Of Directors Corporate Innovation DRNTU::Business::Finance Zhang, Le Kang, Jun-Koo Liu, Wei-Lin Low, Angie Friendly boards and innovation |
| title | Friendly boards and innovation |
| title_full | Friendly boards and innovation |
| title_fullStr | Friendly boards and innovation |
| title_full_unstemmed | Friendly boards and innovation |
| title_short | Friendly boards and innovation |
| title_sort | friendly boards and innovation |
| topic | Board Of Directors Corporate Innovation DRNTU::Business::Finance |
| url | https://hdl.handle.net/10356/86206 http://hdl.handle.net/10220/48301 |
| work_keys_str_mv | AT zhangle friendlyboardsandinnovation AT kangjunkoo friendlyboardsandinnovation AT liuweilin friendlyboardsandinnovation AT lowangie friendlyboardsandinnovation |