Are Founder-CEOs Better Innovators?
Posted: 13 Mar 2014 Last revised: 14 May 2014
Date Written: March 12, 2014
Abstract
Founder-CEOs invest more in R&D projects. My findings suggest this is an over- investment problem since founder-CEO firms are less able to obtain patents and future citations per patent compared to non-founder CEO firms. Using instrumental variables, I argue that the negative effect of founder-CEOs on innovation is causal. The findings are consistent with a lazy manager hypothesis; the negative relationship between innovation and founder-CEO is weaker when product market competition is more intense and/or when CEO is less “entrenched”.
Keywords: Founder-CEO, Innovation
JEL Classification: G30
Suggested Citation: Suggested Citation
Shafi, Kourosh, Are Founder-CEOs Better Innovators? (March 12, 2014). Available at SSRN: https://ssrn.com/abstract=2408171
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