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Technical expert CEOs and corporate innovation

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  • Ting, Hsiu-I
  • Wang, Ming-Chun
  • Yang, J. Jimmy
  • Tuan, Kai-Wen

Abstract

We analyze the effect of CEOs with science and engineering backgrounds on corporate innovation using a sample of Chinese listed firms from 2008 to 2015. In line with theoretical prediction, managers with science and engineering backgrounds have a positive influence on corporate innovation. However, technical expertise appears to come at the cost of poor operating and stock performances. Furthermore, non-technical expert CEOs in SOEs have horizon problems associated with a lower return on assets in the future. This study extends prior literature by providing new evidence that managerial training and work experience matter for corporate innovation.

Suggested Citation

  • Ting, Hsiu-I & Wang, Ming-Chun & Yang, J. Jimmy & Tuan, Kai-Wen, 2021. "Technical expert CEOs and corporate innovation," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:pacfin:v:68:y:2021:i:c:s0927538x21001104
    DOI: 10.1016/j.pacfin.2021.101603
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    Cited by:

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    2. Narayan, Paresh Kumar & Narayan, Seema & Tran, Vuong Thao, 2023. "Patent-related intellectual property and corporate investment," Finance Research Letters, Elsevier, vol. 52(C).
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    6. Yang Liu & Junjun Huo & Qingqing Li, 2024. "Can Executives with Internet Experience Enhance Corporate Innovation?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11932-11955, September.

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    More about this item

    Keywords

    CEO's characteristics; Technical expertise; Technical expert CEO; CEO training and work experience; Science and engineering backgrounds; Corporate innovation; Firm performance;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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