Bringing Innovation to Fruition: Insights From New Trademarks

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

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

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 languageEnglish (US)
Pages (from-to)474-520
Number of pages47
JournalJournal of Financial and Quantitative Analysis
Volume59
Issue number2
DOIs
StatePublished - Mar 8 2024

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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