全球智库信息集成服务系统(G2TT): DP11472 When is Good News Not Good News? Opening Up the Black Box of Innovation for Family Firms

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来源类型	Discussion paper
规范类型	论文
来源ID	DP11472
	DP11472 When is Good News Not Good News? Opening Up the Black Box of Innovation for Family Firms
	Massimo Massa; Po-Hsuan Hsu; Hong Zhang
发表日期	2016-08-29
出版年	2016
语种	英语
摘要	This paper examines the incentives for family firms to innovate. We argue that, due to the wealth concentration of major shareholders, family firms are incentivized to diversify their risk through innovation. In particular, family firms use innovation to explore new (as opposed to existing) fields of business. Using a comprehensive sample of U.S. family-owned public firms and patents for the period from 1998 to 2010, we confirm that family ownership is positively (negatively) related to exploratory (exploitative) innovation. Tests based on instrumental variables regression (divorce laws of family firms’ headquarter states or neighboring states) and regulatory shocks in inheritance taxes further offer a causal interpretation. Market prices, however, respond negatively to family firms’ exploratory innovation, suggesting that such innovation may benefit major shareholders of family firms at the cost of minority shareholders. Our results suggest that risk-mitigation incentives play an important role in affecting innovation strategies, which may have subtle implications for investors in financial markets.
主题	Financial Economics
关键词	Family firms Innovation Under-diversification Innovation strategies
URL	https://cepr.org/publications/dp11472
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/540286
推荐引用方式 GB/T 7714	Massimo Massa,Po-Hsuan Hsu,Hong Zhang. DP11472 When is Good News Not Good News? Opening Up the Black Box of Innovation for Family Firms. 2016.