Stock Liquidity and Firm Innovation : The Role of Investor Protection and External Finance Dependency
Drawing on a comprehensive sample of listed firms across 33 countries from 1997 to 2014, our findings reveal a negative association between liquidity and corporate innovation, indicating that higher liquidity leads to a reduction in the number of patents and patent citations. These results remain robust across various specification tests to address for potential endogeneity concerns. Additionally, we observe that countries with robust minority shareholder protection, transparent information environments, and private sector-friendly systems experience a weaker impact of liquidity on innovation. This study offers valuable insights into the complex interplay between liquidity and corporate innovation, emphasizing the significance of legal and financial environments in shaping this relationship
Year of publication: |
[2023]
|
---|---|
Authors: | Nguyen, Truong Giang ; Nguyen, My |
Publisher: |
[S.l.] : SSRN |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Knowledge Diffusion in the U.S. Supply Chain Network
Nguyen, Truong Giang, (2023)
-
Nguyen, My, (2012)
-
Bank market power and revenue diversification: Evidence from selected ASEAN countries
Nguyen, My, (2012)
- More ...