The Exploratory Mindset and Corporate Innovation
| Autor: | Zhaozhao He, David Hirshleifer |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Generality 050208 finance ComputingMilieux_THECOMPUTINGPROFESSION Earnings media_common.quotation_subject 05 social sciences Novelty ComputingMilieux_LEGALASPECTSOFCOMPUTING Mindset GeneralLiterature_MISCELLANEOUS Incentive Originality Accounting 0502 economics and business Value (economics) Business 050207 economics Finance Stock (geology) Industrial organization media_common |
| Zdroj: | Journal of Financial and Quantitative Analysis. 57:127-169 |
| ISSN: | 1756-6916 0022-1090 |
| DOI: | 10.1017/s0022109020000800 |
| Popis: | We propose that chief executive officer (CEO) exploratory mindset (inherent desire to search for novel ideas and long-term orientation) promotes innovation. Firms with CEOs with PhD degrees (PhD CEOs) produce more exploratory patents with greater novelty, generality, and originality. PhD CEOs engage less in managing earnings and stock prices, invest more in research and development (R&D) and alliances, generate higher long-term value of patents, and experience more positive market reactions to R&D alliances. Their firms achieve superior long-run operating performance. They tend to be hired by research-intensive firms with poor financial performance. Evidence from managerial incentive shocks and turnovers suggests that these effects do not derive solely from CEO–firm matching. |
| Databáze: | OpenAIRE |
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