Work

CEO greed and corporate technological innovation: Analyst coverage as an external governance mechanism in China’s A-share market

Year: 2025

Type: article

Abstract: As the Fourth Industrial Revolution advances, technological innovation has emerged as a key driver for firms to shape core competitiveness. The corporate governance literature recognizes CEO personality traits as key determinants of a firm's technological innovation. Drawing on Upper Echelons Theory and Behavioral Agency Theory, this study investigates the effect of CEO greed on corporate technological innovation using a sample of China's A-share companies listed on the Shanghai and Shenzhen stock exchanges from 2011 to 2023. We find that: (1) CEO greed significantly fosters corporate technological innovation. (2) Analyst coverage strengthens the positive relationship between CEO greed and corporate technological innovation. (3) This effect varies significantly across different firms and industries. (4) CEO greed significantly promotes exploitative (shorter-cycle) innovation, but has no significant effect on exploratory (longer-cycle) innovation.

Source: PLoS ONE

DOI: 10.1371/journal.pone.0337179

Authors: Yuanbo Hu, Ruiyuan Cong, Ran Teng, Baolong Ji

Institutions: Zhejiang DongFang Vocational and Technical College, Macau University of Science and Technology, Bohai University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,382