IDEAS home Printed from https://ideas.repec.org/a/spr/jecfin/v48y2024i1d10.1007_s12197-023-09632-z.html
   My bibliography  Save this article

Innovation and governance

Author

Listed:
  • Saurav Roychoudhury

    (Capital University, 1 College & Main)

  • Anuj Bhowmik

    (Indian Statistical Institute)

  • Srobonti Chattopadhyay

    (Rabindra Bharati University)

Abstract

Innovation is a key driver of long-term economic growth and has significantly improved living standards. Corporate innovation efforts are at the forefront of this process. We propose a two-period career concern model to better understand the factors that influence a corporation’s decision to undertake risky innovation. In this model, a corporation’s manager is influenced by the company’s corporate governance structure and the level of competition in the product market. Our research shows that strong corporate governance positively impacts a manager’s decision to innovate due to career concerns. However, we also found that firms in industries with low competition benefit more from good governance than those in highly competitive industries. This conclusion is supported by our analysis of a panel data set from the 1990s, which contains information on time-varying patent citations in the US.

Suggested Citation

  • Saurav Roychoudhury & Anuj Bhowmik & Srobonti Chattopadhyay, 2024. "Innovation and governance," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 48(1), pages 78-106, March.
    • Handle: RePEc:spr:jecfin:v:48:y:2024:i:1:d:10.1007_s12197-023-09632-z
    DOI: 10.1007/s12197-023-09632-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12197-023-09632-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12197-023-09632-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Career concerns; Innovation; Corporate governance; Patents; Competition;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecfin:v:48:y:2024:i:1:d:10.1007_s12197-023-09632-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.