Director age and corporate innovation: Evidence from textual analysis
Journal of Behavioral and Experimental Finance, ISSN: 2214-6350, Vol: 37, Page: 100779
2023
- 5Citations
- 34Captures
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Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Article Description
Motivated by agency theory and resource dependency theory, we explore whether director age influences firm’s innovation. Using textual-based innovation measures proposed by Bellstam, Bhagat and Cookson (2019), we find that older directors impede the firm’s innovation. Our findings are robust to additional analyses including 2SLS instrumental variable and GMM dynamic panel data estimations and unlikely to be driven by unobserved heterogeneity. We provide evidence supporting agency theory where information asymmetry inherent in innovation investment leads to substantial agency costs.
Bibliographic Details
http://www.sciencedirect.com/science/article/pii/S2214635022001010; http://dx.doi.org/10.1016/j.jbef.2022.100779; http://www.scopus.com/inward/record.url?partnerID=HzOxMe3b&scp=85145574159&origin=inward; https://linkinghub.elsevier.com/retrieve/pii/S2214635022001010; https://dx.doi.org/10.1016/j.jbef.2022.100779
Elsevier BV
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