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The impact of executive diversity on corporate innovation: Evidence from the natural experiment of high‐speed rail in China

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  • Zhaorui Guo
  • Kam C. Chan
  • Jun Huang

Abstract

We examine the impact of executive diversity on corporate innovation using an exogenous natural experiment: the implementation of high‐speed rail (HSR) in China. The findings suggest that after a city implements HSR, firms increase their executive diversity, resulting in better corporate innovation than firms in non‐HSR cities. Additional analysis suggests that when a firm belongs to a competitive industry, is located in a low marketization region, or operates in a poor transportation region, the impact of HSR on executive diversity and corporate innovation is magnified. Our findings carry implications for other emerging markets.

Suggested Citation

  • Zhaorui Guo & Kam C. Chan & Jun Huang, 2021. "The impact of executive diversity on corporate innovation: Evidence from the natural experiment of high‐speed rail in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 219-234, January.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:1:p:219-234
    DOI: 10.1002/mde.3227
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