What question did this study set out to answer?

To examine whether a CEO's exploratory mindset, proxied by holding a PhD degree, enhances corporate innovation and long-term firm performance.

October 19, 2020Journal of Financial and Quantitative Analysis

The Exploratory Mindset and Corporate Innovation

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Authors

ZHZhaozhao He DHDavid Hirshleifer

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Overview

Empirical analysis reveals that PhD CEOs drive greater exploratory patenting and R&D investment in corporations, indicating that exploratory leadership improves long-term operating performance.

Key Points

To examine whether a CEO's exploratory mindset, proxied by holding a PhD degree, enhances corporate innovation and long-term firm performance.
Assessed patent metrics (novelty, generality, originality, and long-term value), R&D expenditures, and earnings management across firms led by PhD versus non-PhD CEOs.
Examined managerial incentive shocks and CEO turnover events to isolate the effect of CEO exploratory mindset from endogenous CEO–firm matching.
Firms led by PhD CEOs generate significantly more exploratory patents characterized by higher novelty, generality, and originality.
PhD CEOs invest more in R&D and strategic alliances, engage less in short-term earnings and stock price management, and achieve superior long-run operating performance.

Cite This Study

He et al. (2020) studied this question.

synapsesocial.com/papers/69df3f81915fa0495361410c https://doi.org/10.1017/s0022109020000800

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October 19, 2020Journal of Financial and Quantitative Analysis

The Exploratory Mindset and Corporate Innovation

View Full Paper

Ask AI

Bookmark

Authors

ZHZhaozhao He DHDavid Hirshleifer

Discussion

Member takes

Overview

Empirical analysis reveals that PhD CEOs drive greater exploratory patenting and R&D investment in corporations, indicating that exploratory leadership improves long-term operating performance.

Key Points

To examine whether a CEO's exploratory mindset, proxied by holding a PhD degree, enhances corporate innovation and long-term firm performance.
Assessed patent metrics (novelty, generality, originality, and long-term value), R&D expenditures, and earnings management across firms led by PhD versus non-PhD CEOs.
Examined managerial incentive shocks and CEO turnover events to isolate the effect of CEO exploratory mindset from endogenous CEO–firm matching.
Firms led by PhD CEOs generate significantly more exploratory patents characterized by higher novelty, generality, and originality.
PhD CEOs invest more in R&D and strategic alliances, engage less in short-term earnings and stock price management, and achieve superior long-run operating performance.

Cite This Study

He et al. (2020) studied this question.

synapsesocial.com/papers/69df3f81915fa0495361410c https://doi.org/10.1017/s0022109020000800

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