Società Italiana di Diritto ed Economia, SIDE - ISLE 2015 - 11TH ANNUAL CONFERENCE

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Does corporate governance affect innovation? Evidence from Swiss corporations
Massimiliano Vatiero, Marcello Puca

Last modified: 2015-12-15

Abstract


Already Joseph Schumpeter recognised the importance of finance and corporate governance in stimulating innovation. Today the changing nature of competition and the increasing pressure of globalization market make innovation the most crucial determinants of the corporate value, of competitive advantage of firms and nations, and of economic growth. The implicit consequence is that the features of corporate governance may stimulate innovation, and thus growth.

In this paper, we investigate whether the characteristics of the relationships between controlling corporate agent (blockholders and or managers) and minority shareholders affects the extent of innovation in an economy—indeed, following the Grossman-Hart-Moore model (e.g. Hart 1995), ownership is a means to stimulate investments.

Using data on patents (and citations) and on corporate structure of Swiss corporations, we analyze this role of the corporate ownership.

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