Abstract
We analyze the effect of CEOs with science and engineering backgrounds on corporate innovation using a sample of Chinese listed firms from 2008 to 2015. In line with theoretical prediction, managers with science and engineering backgrounds have a positive influence on corporate innovation. However, technical expertise appears to come at the cost of poor operating and stock performances. Furthermore, non-technical expert CEOs in SOEs have horizon problems associated with a lower return on assets in the future. This study extends prior literature by providing new evidence that managerial training and work experience matter for corporate innovation.
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