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Accounting backgrounds and technological innovation: Are accountant CEOs inferior innovators?

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Listed:
  • Cao, Jian
  • Chen, Feng
  • Li, Mingxiang
  • Luo, Xin

Abstract

Studies grounded in the theory of vocational personality suggest that accountants exhibit a conventional personality type in virtue of which they tend to be relatively uncreative. The well-observed phenomenon whereby corporations appoint CEOs with accounting backgrounds raises the question of how effectively accountant CEOs lead technological innovation. Using a large dataset of patents issued to U.S. firms from 2001 through 2018, we find that firms with accountant CEOs are associated with lower innovation output and a weaker propensity to pursue explorative innovations but greater efficiency in generating innovation output per unit of resource input. We also show that industry growth mitigates the negative effects of accountant CEOs on exploration and innovation while enhancing their capacity to promote innovation efficiency. Our findings delineate the trade-offs associated with accountant CEO appointments and highlight a significant yet underexplored aspect of a CEO's personal background—underlying vocational personality traits—as determinants that influence innovation pathways and strategic outcomes.

Suggested Citation

  • Cao, Jian & Chen, Feng & Li, Mingxiang & Luo, Xin, 2025. "Accounting backgrounds and technological innovation: Are accountant CEOs inferior innovators?," Research Policy, Elsevier, vol. 54(3).
    • Handle: RePEc:eee:respol:v:54:y:2025:i:3:s0048733325000046
    DOI: 10.1016/j.respol.2025.105175
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    Keywords

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    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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