Do married CEOs Foster more efficient innovation?

Abstract

We examine the impact of CEO marital status on firm innovative efficiency. We find that firms led by married CEOs produce 8% more patents and citations per unit of investment and generate more explorative patents. Married CEOs create a culture of tolerance among their employees that is conducive to risk taking, and their firms produce more efficient innovation (1) in regions that value social capital and (2) in firms that value favorable employee treatment. We find that the tolerant culture of married CEO firms produces more efficient innovation when occurring in tandem with mechanisms facilitating a long‐term strategic orientation.

ESG performance and firms' innovation efficiency: the moderating role of state-owned firms and regional market development

“…Finally, employees and potential candidates will actively recognize and support companies with high ESG performance, which, in turn, improves their innovation efficiency. Employees and potential job seekers are the core suppliers of human capital to the company, and possessing this capital is important for a firm to achieve a high level of innovation efficiency (B€ ackstr€ om and Bengtsson, 2019;Cho et al, 2023;Kesting and Parm Ulhøi, 2010). High ESG performance indicates that a company is actively engaged in meeting its environmental and social responsibilities, which enhances the company's reputation and allows its employees to receive more praise and recognition from the outside world.…”