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Do CEO characteristics influence a firm’s investment in brand equity? Evidence from Chinese listed firms

Author

Listed:
  • Qiuqin He

    (Hangzhou Normal University)

  • Agustín Carrilero-Castillo

    (ESIC Business & Marketing School)

  • Joaquin Gonzalez-Garcia

    (Polytechnic University of Valencia)

Abstract

This paper contributes to the upper-echelons theory by extending the investigation of how CEO characteristics, namely gender, age, tenure, education attainment, and duality, influence firms’ strategic decisions regarding brand equity investment. We gather 8830 firm-year observations from the Chinese listed firms for the period of 2012 to 2018. We develop several hypotheses and use a probit regression specification to test each hypothesis. The empirical results show that a CEO’s tenure and duality have a positive influence. Interestingly, the CEO’s age has a negative influence while their gender and education have no significant influence on a firm’s propensity to invest in brand equity. It indicates that longer tenures and duality lead CEOs to be confident making them more willing to invest in high-risk projects. It also indicates that older CEO’s are risk-averse, while gender does not play a role in the risk-taking appetite of the CEO. The results provide several implications for firms looking to develop influential brands, especially in China.

Suggested Citation

  • Qiuqin He & Agustín Carrilero-Castillo & Joaquin Gonzalez-Garcia, 2022. "Do CEO characteristics influence a firm’s investment in brand equity? Evidence from Chinese listed firms," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 73-87, March.
    • Handle: RePEc:spr:intemj:v:18:y:2022:i:1:d:10.1007_s11365-020-00721-7
    DOI: 10.1007/s11365-020-00721-7
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