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.

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

DOI

10.1111/fima.12205

Persistent Identifier

https://archives.pdx.edu/ds/psu/26979

Available for download on Wednesday, September 18, 2019

Share

COinS