Diversity and inclusion: Evidence from corporate inventors

Chunfang Cao, Xiaohui Li, Xiaoyang Li, Cheng Zeng and Xuan Zhou

Journal of Empirical Finance, 2021, vol. 64, issue C, 295-316

Abstract: Inclusion is often considered a crux of diversity management. 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 (search for similar items in EconPapers)
JEL-codes: G34 M14 O32 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:64:y:2021:i:c:p:295-316

DOI: 10.1016/j.jempfin.2021.10.004

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