Feeling right at home: Hometown CEOs and firm innovation

Ren, Shenggang; Cheng, Yingmei; Hu, Yibo; Yin, Chao

doi:10.1016/j.jcorpfin.2020.101815

Cited by 72 publications

(76 citation statements)

References 84 publications

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“…The HA of the ultimate controller has a positive impact on CSR in Chineselisted private firms. This result is consistent with the results of Ren et al (2021a), who studied the relationship between CEO hometown identity and firm innovation. It is worth noting that firm innovation is a sustainable firm behavior that contributes to the long-term growth of the firm.…”

Section: Discussionsupporting

confidence: 92%

“…For example, Hodler and Raschky (2014) surveyed national leaders in 126 countries and found that regional favoritism existed during the time these leaders were in power with stronger nighttime lighting in their birthplaces. In addition, when their executives had hometown ties to the firms, firms were more innovation-oriented (Ren et al, 2021a), and the availability of trade credit to firms increased (Kong et al, 2020). At the same time, attachment promotes environmental responsibility (Lee, 2011), concern for climate change (Scannell and Gifford, 2013), and the implementation of sustainable development goals (Adger et al, 2013;Gifford, 2014;Masterson et al, 2017;Brown et al, 2019).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Referring to Chen et al ( 2020) and Ren et al (2021a), we introduced control variables at the firm level, including the following:…”

Section: Firm-level Control Variablesmentioning

confidence: 99%

“…Finally, we followed Ren et al (2021a) and controlled the regional variables, including the following: GDP (GDP). GDP divided by the total population of the province where the firm is located is employed for this measurement (Data sources: the website of the National Bureau of Statistics website .…”

Section: Regional Characteristics Variablesmentioning

confidence: 99%

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Hometown attachment and corporate social responsibility: Evidence from overseas Chinese entrepreneurs

Xia

Dang

et al. 2022

Front. Psychol.

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The relationship between hometown attachment (HA) and corporate social responsibility (CSR) is a topic to be explored in depth. We measured the HA by the Chinese diaspora background and the immigrant culture of the ultimate controllers of the firm and employed the sample of Chinese non-financial private-listed companies in Shanghai and Shenzhen from 2003 to 2019 to investigate the impact of the HA on overseas Chinese entrepreneurs on CSR. We found that the HA of the overseas Chinese ultimate controller significantly increases the level of CSR, and this promoting effect rises when the firm ultimately held by the overseas Chinese entrepreneur is registered in the expatriate hometown. Our further analysis found that the personal characteristics of overseas Chinese entrepreneurs and regional cultural differences have a moderating effect on the above relationship. In particular, we found that overseas Chinese entrepreneurs who are women or with lower academic qualifications have a stronger sense of CSR. Moreover, in areas with low marketization or a high level of social trust, HA of overseas Chinese entrepreneurs plays a more active role in CSR. The results remain robust after the robustness test and the endogenous test. The conclusion of this study not only highlights the impact of psychological factors on the level of CSR but also provides a reference for the study of the decision-making behavior of overseas Chinese entrepreneurs.

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Section: Discussionsupporting

confidence: 92%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Referring to Chen et al ( 2020) and Ren et al (2021a), we introduced control variables at the firm level, including the following:…”

Section: Firm-level Control Variablesmentioning

confidence: 99%

Section: Regional Characteristics Variablesmentioning

confidence: 99%

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Hometown attachment and corporate social responsibility: Evidence from overseas Chinese entrepreneurs

Xia

Dang

et al. 2022

Front. Psychol.

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“…Research on executive incentives and capital cost has mainly explored the effects of corporate performance on executive incentive systems (Chen et al, 2018 ; Fang et al, 2018 ; Abudy et al, 2020 ; Chowdhury et al, 2020 ; Carter et al, 2021 ; Gao et al, 2021 ; Ren et al, 2021 ). For example, Chen et al ( 2018 ) investigated the effect of corporate financial distress risk on the initial compensation contracts of new executives.…”

Section: Introductionmentioning

confidence: 99%

Research on the Effect of Executive Incentive Institutional Innovation on the Cost of Equity—Evidence From Chinese Listed Companies

Wang

Deng

2021

Front. Psychol.

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Executive incentive has long been a hot topic among academics and practitioners. With the continuous development of China's manager market, the spirit of innovation and entrepreneurship among executives has exerted a greater influence on corporate performance. Enterprise innovation is an important part of the entrepreneurial spirit. Moreover, China's supply-side reforms and compensation system of the state-owned enterprises (SOEs) have been advanced and innovative. Therefore, based on the manager human capital theory and the organizational innovation theory, and using 15,492 firm-year observations from China's Shanghai and Shenzhen A-share listed companies for the period 2005–2018, we constructed various models, including the Gorden model, the Growth Rate of Price–Earnings Ratio model (PEG), the Ohlson and Juettner-Nauroth model (OJ), and the Capital Asset Pricing model (CAPM), to measure the cost of equity. We investigated the effect of the institutional innovation of executive incentives on the cost of equity, and the heterogeneous influence of China's special property rights system on the relationship between the two. We found that the innovations of the executive incentive system have a positive governance effect on the cost of equity. In particular, executive compensation incentives significantly reduce a company's equity costs. We also find that the state-owned property rights may weaken the positive effect of institutional innovation of executive incentives. Furthermore, China's executive incentives system and corporate governance mechanism are imperfect; and therefore, institutional innovation is a matter of great urgency and more innovative ideas for the manager market need to be introduced. China's listed companies should give full play to the spirit of innovation and entrepreneurship, constantly innovating incentive-based compensation systems of companies, and establishing a scientific and innovative concept of the cost of equity. The findings are robust after controlling for potential endogeneity concerns.

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CEO's marketing experience and firm green innovation

2023

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Drawing on upper echelons theory (UET), we examine whether and how chief executive office (CEO) marketing experience affects firm green innovation. Using a sample of Chinese‐listed manufacturing firms from 2008–2020 and hand‐collected data on CEO marketing experience, we find a positive relationship between CEOs' marketing experience and corporate green innovation. The positive relationship is robust after a series of robustness tests. Our further investigations reveal that the positive relationship is more pronounced when firms face higher‐level media coverage and stricter local environmental regulations. In addition, using textual analysis, we also find that market‐oriented culture plays a critical mediating role in this positive relationship. These findings enrich the relevant literature on strategic leadership and green innovation and are essential for companies and policymakers in developing green innovation strategies.

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Feeling right at home: Hometown CEOs and firm innovation

Cited by 72 publications

References 84 publications

Hometown attachment and corporate social responsibility: Evidence from overseas Chinese entrepreneurs

Hometown attachment and corporate social responsibility: Evidence from overseas Chinese entrepreneurs

Research on the Effect of Executive Incentive Institutional Innovation on the Cost of Equity—Evidence From Chinese Listed Companies

CEO's marketing experience and firm green innovation

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