Top Management Human Capital, Inventor Mobility, and Corporate Innovation

88 Pages Posted: 3 Sep 2015 Last revised: 16 Sep 2018

See all articles by Thomas J. Chemmanur

Thomas J. Chemmanur

Boston College - Carroll School of Management

Lei Kong

University of Alabama - Department of Economics, Finance and Legal Studies

Karthik Krishnan

Northeastern University

Qianqian Yu

Lehigh University

Date Written: June 18, 2015

Abstract

Using panel data on top management characteristics and a management quality factor constructed using common factor analysis on individual management quality measures, we analyze the relation between top firm management quality and corporate innovation inputs and outputs. We show that top management quality is an important determinant of corporate innovation, with different individual aspects of management quality affecting innovation in younger and older firms differently. Further, firms with higher top management quality engage in more risky (“explorative”) innovation strategies. Finally, hiring more and higher quality inventors is an important channel through which higher management quality firms achieve greater innovation output.

Keywords: Corporate Innovation; Top Management Human Capital; Innovation Strategy; Inventor Mobility

JEL Classification: G31, O31, O32, J24

Suggested Citation

Chemmanur, Thomas J. and Kong, Lei and Krishnan, Karthik and Yu, Qianqian, Top Management Human Capital, Inventor Mobility, and Corporate Innovation (June 18, 2015). Journal of Financial and Quantitative Analysis (JFQA), Forthcoming. Available at SSRN: https://ssrn.com/abstract=2654416 or http://dx.doi.org/10.2139/ssrn.2654416

Thomas J. Chemmanur (Contact Author)

Boston College - Carroll School of Management ( email )

Finance Department, 436 Fulton Hall
Carroll School of Management, Boston College
Chestnut Hill, MA 02467-3808
United States
617-552-3980 (Phone)
617-552-0431 (Fax)

HOME PAGE: http://https://www2.bc.edu/thomas-chemmanur/

Lei Kong

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States

Karthik Krishnan

Northeastern University ( email )

360 Huntington Avenue
414C Hayden Hall
Boston, MA 02115
United States
617-373-4707 (Phone)

HOME PAGE: http://www.northeastern.edu/kkrishnan

Qianqian Yu

Lehigh University ( email )

621 Taylor Street
Bethlehem, PA 18015
United States

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