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Agglomeration economies and firm performance in Chinese cities: does CEO educational specialization matter

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  • Cui Zhang
  • Baifang Wang

Abstract

This paper examines how CEOs educational background affects the agglomeration economies–firm performance relationship based on the upper echelons theory. With a sample of Chinese software and information technology services public listed firms, it is found that CEO educational specialization helps firms to reap the benefits of agglomeration. Specifically, firms led by CEOs with science or engineering degrees benefit more from specialization externalities, while firms led by CEOs with business, economics or legal degrees enjoy more diversity externalities. This paper contributes to the specialization versus diversity debate by stating the importance of individual CEOs.

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  • Cui Zhang & Baifang Wang, 2024. "Agglomeration economies and firm performance in Chinese cities: does CEO educational specialization matter," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 29(2), pages 863-881, April.
    • Handle: RePEc:taf:rjapxx:v:29:y:2024:i:2:p:863-881
    DOI: 10.1080/13547860.2022.2067934
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