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Be nice to your innovators: employee treatment and corporate innovation performance
journal contribution
posted on 2016-08-01, 00:00 authored by C Chen, Y Chen, P H Hsu, Edward PodolskiThis 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.
History
Journal
Journal of corporate financeVolume
39Pagination
78 - 98Publisher
ElsevierLocation
Amsterdam, The NetherlandsPublisher DOI
ISSN
0929-1199Language
engPublication classification
C1 Refereed article in a scholarly journal; C Journal articleCopyright notice
2016, ElsevierUsage metrics
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