@techreport{2706a6179b674296b8981e0076d9df0b,
title = "Do Golden Parachutes Spur Innovation in Concentrated-Ownership Corporations",
abstract = "This paper provides highly significant evidence that golden parachutes spur innovation in concentrated-ownership corporations and State-Owned-Enterprises (SOEs). Taking advantage of China's institutional features, we find that golden parachutes lead to higher levels of innovation quantity and quality through a risk-taking mechanism. The positive effects of parachutes on innovation are more pronounced when ownership concentration increases for SOEs, as well as when ownership concentration decreases for non-SOEs. We establish causality with two novel instrumental variables – executive lawyer alumni connection and law firm density around headquarter.",
keywords = "innovation, golden parachute, Ownership concentration, SOEs",
author = "Ke Wang and Rachel Pownall and Cong Xia and Xiaorui Tang",
year = "2021",
month = jan,
day = "12",
language = "English",
series = "SSRN Working papers",
publisher = "SSRN",
number = "3694964",
type = "WorkingPaper",
institution = "SSRN",
}