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Be nice to your innovators: employee treatment and corporate innovation performance

Chen, Chen, Chen, Yangyang, Hsu, Po-Hsuan and Podolski, Edward J. 2016, Be nice to your innovators: employee treatment and corporate innovation performance, Journal of corporate finance, vol. 39, pp. 78-98, doi: 10.1016/j.jcorpfin.2016.06.001.

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Title Be nice to your innovators: employee treatment and corporate innovation performance
Author(s) Chen, Chen
Chen, Yangyang
Hsu, Po-Hsuan
Podolski, Edward J.ORCID iD for Podolski, Edward J. orcid.org/0000-0001-6617-1281
Journal name Journal of corporate finance
Volume number 39
Start page 78
End page 98
Total pages 21
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2016-08
ISSN 0929-1199
Keyword(s) Employee satisfaction
Corporate innovation
Innovative strategies
Patents
Citations
Summary This paper investigates the effect that employee treatment schemes have on corporate innovation performance. We find that firms with better employee treatment schemes produce more and better patents through improving employee satisfaction and teamwork. Additional tests suggest that our main findings cannot be attributed to job security, unionization, reverse causality, and omitted variables. We also find that firms with better employee treatment schemes produce patents that enhance market valuation and facilitate better future operating performance. Collectively, our findings show that treating employees well benefits firms and shareholders, for well treated employees are encouraged to create intellectual property.
Language eng
DOI 10.1016/j.jcorpfin.2016.06.001
Field of Research 150201 Finance
1502 Banking, Finance And Investment
Socio Economic Objective 900201 Administration and Business Support Services
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2016, Elsevier
Persistent URL http://hdl.handle.net/10536/DRO/DU:30084715

Document type: Journal Article
Collection: Department of Finance
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Created: Wed, 06 Jul 2016, 07:51:25 EST

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