Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | Management Quality and Innovation in Entrepreneurial Firms |
| Organization Unit | |
| Authors |
|
| Language |
|
| Series Name | - |
| Number | - |
| Number of Pages | 55 |
| Date | 2014 |
| Abstract Text | We make use of hand-collected data on the quality and reputation of the management teams of a large sample of venture-backed entrepreneurial firms undertaking initial public offerings (IPOs) to address two research questions: How does the human capital of a firm’s top management team (“management quality”) affect the quantity and quality of innovation undertaken by it? Second, what are the effects of the pre-IPO innovativeness of a firm and its management quality on the characteristics of its IPO and its post- IPO operating performance? We hypothesize that higher quality management teams hire better scientists and other researchers; invest in more innovative projects; and manage these projects more ably, leading to higher innovation productivity. Consistent with this, we show in the first part of our analysis using ordinary least squares and instrumental variable analyses that firms with higher management quality exhibit higher innovation productivity in the years immediately before and after their IPOs. The above results hold for both the quantity (number of patents) and quality (citations per patent) of innovation. In the second part of our analysis, we find that firms with greater pre-IPO innovativeness are associated with a larger number of anti-takeover provisions in their corporate charter (determined at IPO), higher IPO valuations, younger age at IPO, and better post-IPO operating performance. Further, we find that the above effects are enhanced if innovative firms are managed by teams of higher management quality. |
| PDF File |
Download
|
| Export |
BibTeX
EP3 XML (ZORA)
|