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CEO greed and corporate technological innovation: Analyst coverage as an external governance mechanism in China’s A-share market

Author

Listed:
  • Yuanbo Hu
  • Ruiyuan Cong
  • Ran Teng
  • Baolong Ji

Abstract

As the Fourth Industrial Revolution advances, technological innovation has emerged as a key driver for firms to shape core competitiveness. The corporate governance literature recognizes CEO personality traits as key determinants of a firm’s technological innovation. Drawing on Upper Echelons Theory and Behavioral Agency Theory, this study investigates the effect of CEO greed on corporate technological innovation using a sample of China’s A-share companies listed on the Shanghai and Shenzhen stock exchanges from 2011 to 2023. We find that: (1) CEO greed significantly fosters corporate technological innovation. (2) Analyst coverage strengthens the positive relationship between CEO greed and corporate technological innovation. (3) This effect varies significantly across different firms and industries. (4) CEO greed significantly promotes exploitative (shorter-cycle) innovation, but has no significant effect on exploratory (longer-cycle) innovation.

Suggested Citation

  • Yuanbo Hu & Ruiyuan Cong & Ran Teng & Baolong Ji, 2025. "CEO greed and corporate technological innovation: Analyst coverage as an external governance mechanism in China’s A-share market," PLOS ONE, Public Library of Science, vol. 20(11), pages 1-27, November.
    • Handle: RePEc:plo:pone00:0337179
    DOI: 10.1371/journal.pone.0337179
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    References listed on IDEAS

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    1. Khalil Jebran & Shihua Chen & Wanying Cai, 2022. "Excess of everything is bad: CEO greed and corporate policies," Review of Quantitative Finance and Accounting, Springer, vol. 59(4), pages 1577-1607, November.
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    4. Qian Lv & Xinchen Li & Yuchen Sun & Yun Han, 2024. "Institutional Investors’ Green Activism and Corporate Green Innovation: Based on the Behind-Scene Communications," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(14), pages 3284-3307, November.
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