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- Publisher Website: 10.1287/mnsc.2020.3626
- Scopus: eid_2-s2.0-85109532687
- WOS: WOS:000682806000015
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Article: Shareholder Litigation and Corporate Innovation
Title | Shareholder Litigation and Corporate Innovation |
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Authors | |
Keywords | shareholder litigation innovation patents derivative lawsuit |
Issue Date | 2020 |
Publisher | INFORMS. The Journal's web site is located at http://mansci.pubs.informs.org |
Citation | Management Science, 2020, Epub 2020-10-05 How to Cite? |
Abstract | We investigate whether and to what extent shareholder litigation shapes corporate innovation by examining the staggered adoption of universal demand laws in 23 states from 1989 to 2005. These laws impose obstacles against shareholders filing derivative lawsuits, thereby significantly reducing managers’ litigation risk. Using a difference-in-differences design and a matched sample, we find that, following the passage of the laws, firms invested more in research and development, produced more patents in new technological classes and more patents based on new knowledge, generated more patents with significant impacts, and achieved higher patent value. Our findings suggest that the external pressure imposed by shareholder litigation discourages managers from engaging in explorative innovation activities. |
Persistent Identifier | http://hdl.handle.net/10722/290029 |
ISSN | 2023 Impact Factor: 4.6 2023 SCImago Journal Rankings: 5.438 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Lin, C | - |
dc.contributor.author | Liu, S | - |
dc.contributor.author | Manso, G | - |
dc.date.accessioned | 2020-10-22T08:20:58Z | - |
dc.date.available | 2020-10-22T08:20:58Z | - |
dc.date.issued | 2020 | - |
dc.identifier.citation | Management Science, 2020, Epub 2020-10-05 | - |
dc.identifier.issn | 0025-1909 | - |
dc.identifier.uri | http://hdl.handle.net/10722/290029 | - |
dc.description.abstract | We investigate whether and to what extent shareholder litigation shapes corporate innovation by examining the staggered adoption of universal demand laws in 23 states from 1989 to 2005. These laws impose obstacles against shareholders filing derivative lawsuits, thereby significantly reducing managers’ litigation risk. Using a difference-in-differences design and a matched sample, we find that, following the passage of the laws, firms invested more in research and development, produced more patents in new technological classes and more patents based on new knowledge, generated more patents with significant impacts, and achieved higher patent value. Our findings suggest that the external pressure imposed by shareholder litigation discourages managers from engaging in explorative innovation activities. | - |
dc.language | eng | - |
dc.publisher | INFORMS. The Journal's web site is located at http://mansci.pubs.informs.org | - |
dc.relation.ispartof | Management Science | - |
dc.subject | shareholder litigation | - |
dc.subject | innovation | - |
dc.subject | patents | - |
dc.subject | derivative lawsuit | - |
dc.title | Shareholder Litigation and Corporate Innovation | - |
dc.type | Article | - |
dc.identifier.email | Lin, C: chenlin1@hku.hk | - |
dc.identifier.authority | Lin, C=rp01808 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1287/mnsc.2020.3626 | - |
dc.identifier.scopus | eid_2-s2.0-85109532687 | - |
dc.identifier.hkuros | 317316 | - |
dc.identifier.volume | Epub 2020-10-05 | - |
dc.identifier.isi | WOS:000682806000015 | - |
dc.publisher.place | United States | - |
dc.identifier.issnl | 0025-1909 | - |