Topic: Inventor CEOs and Inventor CEO-Chairpersons in China

Lecturer: Prof. Donghui Li, School of Economics, Shenzhen University

Time: 15:00-16:30 p.m. June 14th, 2023

Venue: B321 Zhixin Building, Central Campus

Abstract: We study the central role that top executives and the Chinese government play in domestic innovation and how the innovation experience of such executives is perceived by the firm and third parties. Our empirical analysis yields three major findings: First, we observe that Inventor CEO and Inventor CEO-Chairperson firms are associated with better innovation output. More importantly, we find that patents are of higher quality when the firm is led by an inventor CEO-Chairperson and that the higher quality is even more pronounced in government-controlled firms. Second, we find that firms award Inventor CEO-Chair

persons with a compensation premium. Finally, we find that Inventor CEO and Inventor CEO-Chairperson firms have a greater analyst coverage. Given the Chinese central government's aggressive pro-innovation policies and its influence on firm outcomes, our study provides valuable insights into the complementary role of top executives and the Chinese government’s role in corporate innovation activities. Furthermore, we also provide insights on the value that firms and external parties such as analysts attach to top executives with innovation experience.