Corporate Governance and Innovative Performance: Evidence from US publicly Traded Manufacturing Firms

This study investigates the relationship between corporate governance and corporate innovation performance. For this purpose, we using COMPUSTAT, patents data and corporate governance quality data to test our hypothesis. We uncover a positive relationship between corporate governance quality, GQ index which is a measure for shareholder right, and innovation outcome, as well governed firm have higher innovation productivity. We conclude that corporate governance quality is an important determinant of innovation performance.