CEO financial career and corporate innovation: Evidence from China

Chenlin Yang, Xinping Xia, Yuguo Li, Yufang Zhao and Shuang Liu

International Review of Economics & Finance, 2021, vol. 74, issue C, 81-102

Abstract: We examine the relationship between chief executive officers (CEOs) and firm innovation. Using CEO individual-level and firm-level data across the Chinese A-share market from 2008 to 2015, a Poisson model estimation shows that financial expert CEOs have significant negative impacts on firm innovation. Financial expert CEOs have caused a 17.5% decrease in the firm innovation level. We argue that the negative effect is due to the crowding-out effect of additional financial investments, which is facilitated by the CEOs’ behavioral consistency. Our study sheds light on exploring CEOs’ behavioral idiosyncrasy on firms’ nonfinancial performance.

Keywords: Financial expert CEO; Innovation; Behavioural consistency (search for similar items in EconPapers)
JEL-codes: G31 J24 O31 O32 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:74:y:2021:i:c:p:81-102

DOI: 10.1016/j.iref.2021.01.018

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