Diversity and Inclusion: Evidence from Corporate Inventors

59 Pages Posted: 5 Aug 2016 Last revised: 5 Oct 2021

See all articles by Chunfang Cao

Chunfang Cao

Sun Yat-sen University (SYSU); Southwest University of Finance and Economics

Xiaohui LI

Hong Kong Polytechnic University

Xiaoyang Li

Deakin University

Cheng (Colin) Zeng

Hong Kong Polytechnic University

Xuan Zhou

Renmin University of China

Date Written: October 5, 2021

Abstract

Inclusion is often considered a crux of diversity m anagement. However, little is known about how board diversity affects corporate performance through organizational inclusive behavior. Using the inventor-level patenting data, we find that firms with more ethnic minority directors attract more productive ethnic minority inventors and promote greater collaboration among inventors, leading to more patents and patents with greater market value. Our findings are robust to a battery of sensitivity tests. Overall, our study offers new evidence that racially diverse boards cultivate inclusive environment for inventors to succeed.

Keywords: Innovation; Board Diversity; Inventor Collaboration; Minority Inventor

JEL Classification: G34, O32

Suggested Citation

Cao, Chunfang and Cao, Chunfang and LI, Xiaohui and Li, Xiaoyang and Zeng, Cheng and Zhou, Xuan, Diversity and Inclusion: Evidence from Corporate Inventors (October 5, 2021). Journal of Empirical Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2817734 or http://dx.doi.org/10.2139/ssrn.2817734

Chunfang Cao

Sun Yat-sen University (SYSU) ( email )

135, Xingang Xi Road
Guangzhou, Guangdong 510275
China

Southwest University of Finance and Economics ( email )

China

Xiaohui LI

Hong Kong Polytechnic University ( email )

Xiaoyang Li (Contact Author)

Deakin University ( email )

70 Elgar Rd
Burwood, Victoria 3125
Australia

Cheng Zeng

Hong Kong Polytechnic University ( email )

11 Yuk Choi Rd
Hung Hom
Hong Kong

Xuan Zhou

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

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