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Bringing Innovation to Fruition: Insights From New Trademarks.

Authors :
Faurel, Lucile
Li, Qin
Shanthikumar, Devin
Teoh, Siew H.
Source :
Journal of Financial & Quantitative Analysis; Mar2024, Vol. 59 Issue 2, p474-520, 47p
Publication Year :
2024

Abstract

We build a novel comprehensive data set of new product trademarks as an output measure of product development innovation. We show that risk-taking incentives in CEO compensation motivate this type of innovation and that this innovation improves firm performance. Using an exogenous shock to executive compensation, we find that reductions in stock option compensation cause reductions in new product development. We also find that firms undertaking new product development experience increases in future cash flow from operations and return on assets. These findings suggest the importance of product development innovation to firms and new trademarks as a novel innovation measure. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00221090
Volume :
59
Issue :
2
Database :
Complementary Index
Journal :
Journal of Financial & Quantitative Analysis
Publication Type :
Academic Journal
Accession number :
176147738
Full Text :
https://doi.org/10.1017/S0022109022001260