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Shareholder value and open innovation: evidence from Dividend Champions

Nicola Miglietta (Department of Management, University of Turin, Turin, Italy)
Enrico Battisti (Department of Management, University of Turin, Turin, Italy)
Alexeis Garcia-Perez (Faculty Research Centre for Business in Society, Coventry University Business School, Coventry, UK)

Management Decision

ISSN: 0025-1747

Article publication date: 24 January 2018

Issue publication date: 4 June 2018




The purpose of this paper is to analyse the companies listed on the US stock market in order to investigate for the selected companies, called the Dividend Champions, the introduction of an open innovation practice.


This study is based on a mixed-methods sequential explanatory design. This research is based on an empirical analysis undertaken with 65 listed companies in order to examine, in the first phase, the Dividend Champions. These firms have increased their dividend yield for at least the past 40 years. In a second phase, this research studies the application of an open innovation practice for those listed companies that have systematically paid increased dividends for 60 years and have, at the same time, beat the market.


This study reveals seven listed companies that, for more than 60 years, have regularly paid growing dividends and, at the same time, have beat the yield of the market (i.e. six out of the seven companies). The latter include: American States Water, Dover Corporation, Emerson Electric, Genuine Parts Co., Parker-Hannifin Corporation and Procter & Gamble Co. All of these corporations have adopted or implemented a practice of open innovation.


To the authors’ knowledge, this is among the first pioneer research work, based on the potential relationship between shareholder value and open innovation. In particular, this paper highlights the fact that US-listed companies can create more value for shareholders over a long period and, at the same time, beat the market by adopting different open innovation practices.



Miglietta, N., Battisti, E. and Garcia-Perez, A. (2018), "Shareholder value and open innovation: evidence from Dividend Champions", Management Decision, Vol. 56 No. 6, pp. 1384-1397.



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Copyright © 2018, Emerald Publishing Limited

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