TY - JOUR
T1 - Director age and corporate innovation
T2 - Evidence from textual analysis
AU - Chindasombatcharoen, Pongsapak
AU - Chatjuthamard, Pattanaporn
AU - Jiraporn, Pornsit
AU - Treepongkaruna, Sirimon
N1 - Funding Information:
This project is funded by National Research Council of Thailand (NRCT) : N42A640326 .
Publisher Copyright:
© 2022 Elsevier B.V.
PY - 2023/3
Y1 - 2023/3
N2 - Motivated by agency theory and resource dependency theory, we explore whether director age influences firm's innovation. Using textual-based innovation measures proposed by Bellstam, Bhagat and Cookson (2019), we find that older directors impede the firm's innovation. Our findings are robust to additional analyses including 2SLS instrumental variable and GMM dynamic panel data estimations and unlikely to be driven by unobserved heterogeneity. We provide evidence supporting agency theory where information asymmetry inherent in innovation investment leads to substantial agency costs.
AB - Motivated by agency theory and resource dependency theory, we explore whether director age influences firm's innovation. Using textual-based innovation measures proposed by Bellstam, Bhagat and Cookson (2019), we find that older directors impede the firm's innovation. Our findings are robust to additional analyses including 2SLS instrumental variable and GMM dynamic panel data estimations and unlikely to be driven by unobserved heterogeneity. We provide evidence supporting agency theory where information asymmetry inherent in innovation investment leads to substantial agency costs.
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U2 - 10.1016/j.jbef.2022.100779
DO - 10.1016/j.jbef.2022.100779
M3 - Article
AN - SCOPUS:85145574159
SN - 2214-6350
VL - 37
JO - Journal of Behavioral and Experimental Finance
JF - Journal of Behavioral and Experimental Finance
M1 - 100779
ER -