“…We also use several control variables to capture other firm‐level and CEO‐level factors that may influence firm value. For the firm‐level characteristics, we consider firm size ( SIZE ; McWilliams & Siegel, 2000), leverage ( LEV ; Jiao, 2010), market to book ratio ( MB ; Gong et al, 2018), R&D expenditure ( RD ; Tang et al, 2018; Samsul, Muhammadm, Chu, & Ugur, 2019), cash flow from operations ( CFO ; Gong & Ho, 2018), capital expenditure ( CAP ; Retrenko, Aime, Ridge, & Hill, 2016), the ratio of current assets to current liabilities ( SLACK ; Pan, Wang, & Weisbach, 2015), and advertising expense ( ADV ; McCarthy et al, 2017). For CEO characteristics, we consider the gender dummy ( GENDER ; Zhang, Zhu, & Ding, 2013), CEO age ( AGE ; Godos‐Diez, Fernandez‐Gago, & Martinez‐Campillo, 2011), CEO tenure ( TENURE ; Chin, Hambrick, & Trevino, 2013), and retire dummy ( RETIRE ; Manner, 2010).…”