Managerial liability and corporate innovation: evidence from a legal shock

• Main Authors: Guan, Yuyan, Zhang, Liandong, Zheng, Liu, Zou, Hong
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2022
• Subjects: Business::Management; Innovation; Legal Liability
• Online Access: https://hdl.handle.net/10356/157048
• Institution: Nanyang Technological University

Despite a longstanding debate over the pros and cons of imposing legal liability on directors and officers (D&Os), there is limited evidence on how D&O liability affects corporate innovation. We study this question by exploiting Nevada's 2001 corporate law change that dramatically lower...