This paper uses compensation peer groups to measure peer effects in corporate innovation. This approach provides a true peer group and better leader-follower link and thus can mitigate the reflection problem suggested by Manski (1993). We find that the average innovation activity of the...

We examine whether a firm's voluntary disclosures, proxied by management earnings forecasts, affect its innovation activity. A firm making more disclosures generates fewer patents and lower-quantity patents. Enactment of SOX is applied as a natural experiment for an exogenous shock to voluntary...

We study whether bank CEO optimism (optimistic bank) plays a role in technological progress. We find that optimistic banks lend more to smaller/riskier firms and charge higher loan spreads to compensate for the higher risk exposures. More interestingly, these optimistic banks prefer lending to...

This study investigates the effect of individual health conditions on individual innovation output, utilizing the staggered passage of recreational marijuana policies as an exogenous shock. Employing a large and current sample of U.S. inventors from 2010 to 2018, our study identifies a...

In this paper, we examine whether and why the Uniform Trade Secrets Act (UTSA) affects the financing costs of innovative firms. Using the UTSA as an exogenous shock, we find that innovative firms are charged significantly lower loan spreads after the release of the UTSA, while non-innovative...