Can military executives improve corporate performance? Evidence from industrial competitive pressure

Ying Hao, Junyi Li, Juan Ni and Ziqi Yin

Pacific-Basin Finance Journal, 2023, vol. 79, issue C

Abstract: We examine whether top executives with military experience improve corporate performance compared with nonmilitary executives. We find that firms with military executives have better sales growth, cost efficiency and operating performance than do firms with nonmilitary executives but mainly in highly competitive industries. The results are robust to adopting the PSM method and confronting changes in the competitive condition. Furthermore, we find that military executives influence corporate performance through the pressure resistance and organizational culture channels. In addition, executives with military experience are associated with fewer product recall and workplace safety cases and implement better quality and safety management than do nonmilitary executives. The relation is also strongest for highly competitive industries—even with financial constraints—indicating that military executives do not profit at the expense of product quality and workplace safety. Our findings suggest that military experience as a determinant of managerial traits constantly impacts decision-making and corporate performance.

Keywords: Military executives; Corporate performance; Industrial competitive pressure; Product recall; Workplace safety (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X2300118X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:79:y:2023:i:c:s0927538x2300118x

DOI: 10.1016/j.pacfin.2023.102052

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().