Phys.org September 18, 2023 According to an international team of researchers (US – University of North Carolina, UT Dallas, Germany, Norway, Brazil) enhanced financial statement disclosures of tax information under Financial Accounting Standards Board (FASB) Interpretation Number 48 (FIN 48) led to more IRS scrutiny and altered the incentives for corporate innovation. Using patent applications as a measure of corporate innovation, they used a difference-in-differences research design with publicly listed US firms as the treatment group and privately held US firms not subject to the disclosure requirements as the control group. They found evidence that following the onset of FIN […]
Category Archives: Innovation
An age gap in the C-suite makes companies more innovative
Phys.org September 5, 2023 A team of researchers in the US (George Mason University, St. John Fisher University) investigated the relationship between internal governance and firms’ innovation. They hypothesized that internal governance stemming from the difference in expected employment horizons between a CEO and the subordinate executives improves a firm’s innovation. Using the age difference between a CEO and their subordinate executives as the primary measure of internal governance, they found a strong positive relationship between internal governance and firms’ innovation output, and scientific and economic values. They showed that the positive relation was causal and the relationship between internal […]