Research shows chair-CEO duality improves R and D investment in firms led by highly educated CEOs, indicating governance structure's role in innovation.
This study investigates the impact of Chair–CEO duality on R and D investment intensity in firms managed by highly educated CEOs using a dataset of 877 firm-year observations from companies listed on the Shanghai and Shenzhen Stock Exchanges between 2015 and 2020. Employing Hausman–Taylor estimations to address potential endogeneity, the results reveal that Chair–CEO duality has a significantly positive effect on R and D investment in such firms. In the context of highly educated CEOs, the concentration of authority does not appear to lead to self-serving or inefficient behaviors but rather to more purposeful investments in innovation. Moreover, the results highlight the differences in how CEOs approach R and D decisions based on the type of postgraduate degree they hold. These findings offer important insights into how leadership education and governance structures jointly influence firms’ strategic-innovation outcomes.
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Shehabaddin Abdullah Abdulwadod Al-Dubai (2025) studied this question.
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