Bringing Innovation to Fruition: Insights From New Trademarks

Lucile Faurel; Qin Li; Devin Shanthikumar; Siew H. Teoh

doi:10.1017/S0022109022001260

Bringing Innovation to Fruition: Insights From New Trademarks

Lucile Faurel, Qin Li, Devin Shanthikumar, Siew H. Teoh

Accountancy, School of

Research output: Contribution to journal › Article › peer-review

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.

Original language	English (US)
Pages (from-to)	474-520
Number of pages	47
Journal	Journal of Financial and Quantitative Analysis
Volume	59
Issue number	2
DOIs	https://doi.org/10.1017/S0022109022001260
State	Published - Mar 8 2024

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1017/S0022109022001260

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Bringing Innovation to Fruition: Insights From New Trademarks

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