CEO political preference and corporate innovation

초록

I demonstrate that CEOs' personal political preferences influence corporate innovation. Firms managed by Republican CEOs tend to adopt more flexible employment policies exhibiting higher employment elasticity with respect to sales. They also tend to have a lower level of corporate innovation, as measured by the number of patents and subsequent citations. The results suggest that firms with Republican CEOs who provide less job security have a negative impact on employees' innovation incentives.

키워드