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Full-Text Articles in Finance and Financial Management
Do Unions Affect Innovation?, Daniel Bradley, Incheol Kim, Xuan Tian
Do Unions Affect Innovation?, Daniel Bradley, Incheol Kim, Xuan Tian
Finance Faculty Publications and Presentations
We examine the effect of unionization on firm innovation, using a regression discontinuity design that relies on “locally” exogenous variation generated by elections that pass or fail by a small margin of votes. Passing a union election results in an 8.7% (12.5%) decline in patent quantity (quality) three years after the election. A reduction in R&D expenditures, reduced productivity of inventors, and departures of innovative inventors appear to be plausible underlying mechanisms through which unionization impedes firm innovation. In response to unionization, firms move their innovation activities away from states where union elections win. Our paper provides new insights into …
Why Trade Credit Financing Is More Important Than Developing Large Customer Relationships For Video Game Suppliers, Jocelyn D. Evans, Dominique G. Outlaw
Why Trade Credit Financing Is More Important Than Developing Large Customer Relationships For Video Game Suppliers, Jocelyn D. Evans, Dominique G. Outlaw
The Journal of Entrepreneurial Finance
Trade credit extended to suppliers in the video game industry does not serve as a commitment device for large customers in determining which vendors to make relationship-specific investments in. Suppliers of video games are better off investing in relationships with trade creditors than seeking out large customers. The costs of large customer relationships are lower sales growth and less long-term debt leverage. Also, large customers don’t form relationships with suppliers in this industry, which has high research and development expenditures nor do they facilitate economic viability with regard to continued independent operational performance or listing on a stock exchange.