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Diversity and inclusion: Evidence from corporate inventors

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  • Cao, Chunfang
  • Li, Xiaohui
  • Li, Xiaoyang
  • Zeng, Cheng
  • Zhou, Xuan

Abstract

Inclusion is often considered a crux of diversity management. However, little is known about how board diversity affects corporate performance through organizational inclusive behavior. Using the inventor-level patenting data, we find that firms with more ethnic minority directors attract more productive ethnic minority inventors and promote greater collaboration among inventors, leading to more patents and patents with greater market value. Our findings are robust to a battery of sensitivity tests. Overall, our study offers new evidence that racially diverse boards cultivate inclusive environment for inventors to succeed.

Suggested Citation

  • Cao, Chunfang & Li, Xiaohui & Li, Xiaoyang & Zeng, Cheng & Zhou, Xuan, 2021. "Diversity and inclusion: Evidence from corporate inventors," Journal of Empirical Finance, Elsevier, vol. 64(C), pages 295-316.
    • Handle: RePEc:eee:empfin:v:64:y:2021:i:c:p:295-316
    DOI: 10.1016/j.jempfin.2021.10.004
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    1. Raddant, Matthias & Takahashi, Hiroshi, 2022. "Interdependencies of female board member appointments," International Review of Financial Analysis, Elsevier, vol. 81(C).

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    More about this item

    Keywords

    Innovation; Board diversity; Inventor collaboration; Minority inventor;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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