Abstract
This paper investigates the impact of firm founders as top managers (founder-managers) on firm innovation. We first propose a text-based indicator of founder-manager paternalism to measure the emotional relationship between founder-managers and the firms they founded from the perspective of socioemotional wealth. We further investigate the role of founder-manager paternalism in firm innovation using a sample of non-state-owned listed firms in China during the period 2007-2017. The results show that founder-manager paternalism has a positive impact on firm innovation. Moreover, the findings indicate that higher levels of corporate governance may undermine the positive relationship between founder-manager paternalism and firm innovation.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.