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Title: Friendly boards and innovation
Authors: Zhang, Le
Kang, Jun-Koo
Liu, Wei-Lin
Low, Angie
Keywords: Board Of Directors
Corporate Innovation
Issue Date: 2018
Source: Kang, J.-K., Liu, W.-L., Low, A., & Zhang, L. (2018). Friendly boards and innovation. Journal of Empirical Finance, 45, 1-25. doi:10.1016/j.jempfin.2017.09.007
Series/Report no.: Journal of Empirical Finance
Abstract: We examine how friendly boards affect firm innovation. Using CEO-director social connections as a measure of board friendliness, we find that firms with friendly boards create more patents and citations. The positive relation between friendly boards and innovation are more pronounced when firms’ advisory needs are higher or when firms operate in innovative industries. Friendly boards are also associated with higher firm value, especially when firms have higher advisory needs or when innovation is an important source of firm value. Our results support the positive view on a friendly board perspective that directors serve as valuable advisors to CEOs.
ISSN: 0927-5398
DOI: 10.1016/j.jempfin.2017.09.007
Rights: © 2017 Elsevier B. V. All rights reserved. This paper was published in Journal of Empirical Finance and is made available with permission of Elsevier B. V.
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:NBS Journal Articles

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