This study examines the relation between employee incentives and corporate innovation. We find that firms with a higher defined benefit (DB) pension value secure more patents and patent citations. We further show that pension freezes, which stop the accumulation of pension obligations,...

This paper examines the role of local attitudes towards gambling on corporate innovative activity. Using a county's Catholics-to-Protestants ratio as a proxy for local gambling preferences, we find that firms located in gambling-prone areas tend to undertake riskier projects, spend more on...

We present a theoretical model and empirical evidences that liquid real asset, which is of high liquidation value, provides an alternative internal channel for supporting corporate innovations. We employ a simple two-period model in which existing assets can be liquidated or placed as collateral...