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Stakeholder engagement and firms' innovation: Evidence from LGBT ‐supportive policies
Author(s) -
Kyaw Khine,
Treepongkaruna Sirimon,
Jiraporn Pornsit
Publication year - 2021
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.2150
Subject(s) - nature versus nurture , business , lesbian , transgender , corporate governance , marketing , public relations , finance , political science , psychology , genetics , psychoanalysis , biology
There is a paucity of research on the effects corporate policies have on fostering innovative activities in firms, while research and development (R&D) investments offer a source of innovations in firms. Using governance data from Kinder, Lyndenberg, and Domini, Research and Analytics, Inc., R&D and financial data from Compustat, and market data from CRSP during the period from 1996 through 2011 this paper investigates whether Lesbian, Gay, Bisexual and Transgender (LGBT) ‐supportive corporate policies promote innovative activities in US firms. To the extent that LGBT–friendly policies allow inclusive working environments and therefore attract and retain talents, corporate can engage more in innovative activities. The findings show that firms with LGBT–supportive policies nurture employees' commitment to the firms and engage more in innovative activities. Heckman selection model, propensity score matching and difference‐in‐difference results all confirm the main findings from instrumental variable (IV) analyses.