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Do prosocial CEOs promote innovation?

Author

Listed:
  • Jiao, Anqi
  • Lu, Juntai
  • Wei, Jia
  • Zhang, Wenqiao

Abstract

In this study, we find robust evidence that firms with prosocial CEOs invent more. Using exogenous CEO turnovers to establish causality, we find a significant increase in the number of patents, citations per patent, and patent value when a non-prosocial CEO is replaced by a prosocial CEO. We further show that prosocial CEOs spark innovation by attracting inventors to join. Finally, we find that the impact of prosocial CEOs on innovation is more pronounced in more innovative and less eco-friendly industries.

Suggested Citation

  • Jiao, Anqi & Lu, Juntai & Wei, Jia & Zhang, Wenqiao, 2023. "Do prosocial CEOs promote innovation?," Finance Research Letters, Elsevier, vol. 55(PB).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003495
    DOI: 10.1016/j.frl.2023.103977
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    References listed on IDEAS

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    More about this item

    Keywords

    Prosocial CEO; Corporate innovation; Employee relation;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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