Shades of grey: Risk-related agency conflicts and corporate innovation
利用一项意外法院裁决对股东诉讼权利的外生负面冲击，研究发现风险相关的代理冲突导致企业创新投入和质量下降，小公司受影响更大，而机构投资者持股高的大公司则未受显著影响。
We investigate how risk-related agency conflicts affect valuable risky investments. Using an exogenous negative shock to shareholders' litigation rights from an unanticipated court ruling that exacerbates risk-related agency conflicts by shielding managers from shareholders' governance through litigation, we show that innovation inputs and quality decline significantly for treated firms. Small firms lacking counteracting governance mechanisms, such as institutional investors, suffer significantly, while large firms with high institutional investments emerge unscathed. Our results are consistent with theories that predict managerial incentives for ‘playing safe’ lead to value-destroying and risk-reducing actions, especially when counteracting incentive mechanisms are muted.