Sponsor
Jing Zhao gratefully acknowledges financial support from the Cameron Research Fellowship in Finance at the School of Business, Portland State University.
Document Type
Post-Print
Publication Date
9-18-2018
Subjects
Corporations -- Technological innovations, Diversity in the workplace -- Management, Industrial management, New products
Abstract
Using new product announcements, patents, and patent citations as measures of corporate innovation, we find that corporate policies that promote more pro‐diversity cultures, specifically treatment of women and minorities, enhance future innovative efficiency. This positive effect is stronger during economic downturns and in firms that are more innovative, value intangibles and human capital more highly, have greater growth options, have higher cash flow, and have stronger governance. Pro‐diversity policies also increase firm value via this stimulating effect on innovative efficiency. Our results suggest a channel through which workforce diversity may enhance firm value.
DOI
10.1111/fima.12205
Persistent Identifier
https://archives.pdx.edu/ds/psu/26979
Citation Details
Mayer, Roger C.; Warr, Richard S.; and Zhao, Jing, "Do Pro‐Diversity Policies Improve Corporate Innovation?" (2018). Business Faculty Publications and Presentations. 122.
https://archives.pdx.edu/ds/psu/26979
Included in
Business Administration, Management, and Operations Commons, Business and Corporate Communications Commons
Description
This is the author’s version of a work that was accepted for publication in Financial Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Financial Management, 47(3), 617–650 and can be found online: https://doi.org/10.1111/fima.12205