Two Essays on Corporate Innovation. Qiu, Bin
dc.contributor.department Business Administration 2019-05-28T19:39:04Z 2019-05-28T19:39:04Z 2017-08
dc.subject corporate innovation
dc.subject pension
dc.subject institutional ownership
dc.subject common ownership
dc.title Two Essays on Corporate Innovation.
dc.type Thesis
dcterms.abstract In Part I of this dissertation, I exploit a natural experiment of tax-qualified defined benefit (DB) plans to identify the effects of deferred compensation on corporate innovation. Using DB pension and patenting data, I find that from 1990 to 2007, firms with higher DB plan value secured more patents and patent citations. An instrumental variable approach and a treatment effects model both support the causal effect of DB plans on corporate innovation. Consistent with the worker-firm bonding theory, my findings suggest the bright side of DB plans despite recent pension freezes. Further analysis reveals that non-qualified executive pensions weaken the above effect. Overall, I provide a positive answer to an important economic question: whether secured deferred compensation promotes corporate innovation among the rank and file employees. Part II tests how ownership structure affects corporate innovation. The prior literature documents a positive effect that the fraction of the firm held by institutional investors has on corporate innovation. I focus on the fraction of the institution's portfolio represented by the firm and find that institutions’ portfolio weights positively affect patent success. Yet, it is important to distinguish between cross-industry diversification and same-industry diversification of monitoring institutions. I provide evidence that the former fosters innovation, while the latter, if it creates common ownership, impedes innovation. I address endogeneity issues with multiple methods, including regression discontinuity design, instrumental variable approach, and difference-in-differences analysis.
dcterms.description Ph.D. Thesis. University of Hawaiʻi at Mānoa 2017.
dcterms.language eng
dcterms.publisher University of Hawaiʻi at Mānoa
dcterms.rights All UHM dissertations and theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission from the copyright owner.
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