Inventor Chief Executive Officers and Firm Innovation
Document Type
Article
Source of Publication
International Review of Finance
Publication Date
6-1-2019
Abstract
© 2019 International Review of Finance Ltd. 2019 Using a novel, manually collected dataset, we find that firms whose chief executive officer (CEO) is an inventor experience significantly better innovation outcomes, as measured by patents and future citations. We obtain these results in models with firm fixed effects, in difference-in-difference analysis of transitioning CEOs that controls for the CEO fixed effects, and among firms with founder CEOs. Firms led by an inventor CEO also exhibit greater tolerance for failure as indicated by a greater number of both highly cited and uncited patents, and engage more in explorative search strategies that exploit new technological trajectories. Stock market, however, seems unable to fully capture the positive impact of inventor CEOs on future innovation: firms whose CEO transitions to be an inventor experience positive abnormal stock returns, especially during the early years following the transition.
DOI Link
ISSN
Publisher
Wiley-Blackwell
Volume
19
Issue
2
First Page
247
Last Page
286
Disciplines
Business
Scopus ID
Recommended Citation
Bostan, Ibrahim and Mian, G. Mujtaba, "Inventor Chief Executive Officers and Firm Innovation" (2019). All Works. 2121.
https://zuscholars.zu.ac.ae/works/2121
Indexed in Scopus
yes
Open Access
no