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

Author

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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)

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.

Suggested Citation

  • Dong Shao & Shukuan Zhao & Shuang Wang & Hong Jiang, 2020. "Impact of CEOs’ Academic Work Experience on Firms’ Innovation Output and Performance: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 12(18), pages 1-21, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:18:p:7442-:d:411557
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    References listed on IDEAS

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    3. Zhengxin Zhang & Bing Xu & Piao Li, 2023. "What affects the quality of sustainability report texts? Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1440-1456, May.

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