Impact of CEOs’ Academic Work Experience on Firms’ Innovation Output and Performance: Evidence from Chinese Listed Companies

Dong Shao, Shukuan Zhao, Shuang Wang and Hong Jiang
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Dong Shao: School of Management, Jilin University, Changchun 130022, China
Shukuan Zhao: School of Management, Jilin University, Changchun 130022, China
Shuang Wang: School of Management, Jilin University, Changchun 130022, China
Hong Jiang: School of Management, Jilin University, Changchun 130022, China

Sustainability, 2020, vol. 12, issue 18, 1-21

Abstract: To date, the effect of the specific type of prior work experience of chief executive officers (CEOs) on innovation and firm performance remains poorly understood. Using upper perspective theory, this study argues that CEOs’ academic work experience affects firms’ innovation output, which in turn determines how research and development (R&D) activities affect firm performance. Analyzing a sample of 1210 Chinese publicly traded firms from 2013–2017, we found that firms with CEOs who were previously associated with universities or research institutions had better innovation output and performance than firms led by CEOs without such background. In addition, we found that former academics spent more on R&D investment, resulting in lower firm performance compared to firms that were not led by CEOs with an academic background. Furthermore, the innovation output was even higher, and performance was inversely reduced for ventures where state ownership is significant.

Keywords: academic experience; corporate innovation; firm performance; incentives; state-owned enterprises (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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