CEO greed and corporate technological innovation: Analyst coverage as an external governance mechanism in China’s A-share market
Yuanbo Hu, Ruiyuan Cong, Ran Teng, Baolong Ji
TL;DR
This study explores how CEO greed influences corporate technological innovation in China's stock market, finding that it promotes short-term innovation and is amplified by analyst coverage.
Contribution
The study introduces analyst coverage as an external governance mechanism that moderates the relationship between CEO greed and innovation.
Findings
CEO greed significantly fosters corporate technological innovation.
Analyst coverage strengthens the positive relationship between CEO greed and innovation.
CEO greed promotes short-term innovation but not long-term innovation.
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…
Genes, proteins, chemicals, diseases, species, mutations and cell lines named across the full text — each resolved to its canonical identifier and authoritative record.
Click any figure to enlarge with its caption.
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7
Figure 8
Figure 9
Figure 10
Figure 11
Figure 12
Figure 13
Figure 14
Figure 15
Figure 16
Figure 17
Figure 18
Figure 19
Figure 20
Figure 21
Figure 22Peer Reviews
No public reviews on file for this paper yet. If you reviewed it on a platform where reviews are public (OpenReview, ICLR, NeurIPS, ICML), you can paste yours below so the community can read it here.
Videos
No videos yet. Explain this paper in a talk, walkthrough, or lecture? Add one.
Taxonomy
TopicsCorporate Finance and Governance · Firm Innovation and Growth · Innovation and Knowledge Management