Top Executives with Academic Work Experience, Stakeholder‐friendly Engagement, and Firm Value

Zhe Li and Xinrui Liu

Abacus, 2026, vol. 62, issue 1, 166-232

Abstract: We study the role of top executives’ prior academic work experience in stakeholder‐oriented activities and related capital market benefits. Analyzing data from China, we demonstrate that firms managed by top executives with academic work experience have higher stakeholder‐friendly engagement scores than those without. The proportion of executives having academic work experience on the management team is positively linked to stakeholder‐friendly activities. Additionally, companies led by academic executives tend to make larger philanthropic donations, adhere to Global Reporting Initiative (GRI) guidelines, and produce more extensive corporate social responsibility (CSR) reports. Furthermore, we show that this positive impact is more pronounced in non‐state‐owned entities, younger firms, those with sufficient cash reserves, and those with larger management teams. Our channel analysis reveals that top executives with academic experience achieve their sustainability goals by actively engaging in employee‐friendly activities, customer and supplier protection disclosures, public relations, and internal sustainability system construction. Finally, we demonstrate that firms with improved stakeholder‐friendly strategies driven by academic executives exhibit higher future firm value, increased investment in research and development initiatives, and attract more financial analyst coverage.

Date: 2026
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