Award-winning CEOs and corporate innovation
Mia Hang Pham,
Yulia Merkoulova and
Chris Veld
Journal of Banking & Finance, 2024, vol. 159, issue C
Abstract:
We examine the role of award-winning CEOs in corporate innovative activities. We find no significant difference in innovation outputs between firms of media award-winning CEOs and a matched sample of predicted winners. However, firms headed by winners of non-media awards generate significantly more patents and citations in the second and third year after the award. Firms led by CEO-winners of media awards attract more interest in Google and see an increase in the number of financial analysts that follow them. These effects likely exert more pressure on managers to meet short-term goals and hence impede the firms’ innovation. We do not find the same effects for firms that have CEOs who win non-media awards. The latter category sees an improvement in employee treatment following the award year. These different channels explain why innovation only increases for firms that are headed by CEOs who win non-media awards.
Keywords: Media award; Non-media award; Innovation; CEO personal award; CEO attribute (search for similar items in EconPapers)
JEL-codes: G30 O31 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:159:y:2024:i:c:s0378426623002704
DOI: 10.1016/j.jbankfin.2023.107075
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