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Are Founder CEO s Effective Innovators?
Author(s) -
Kim Jonghwan Simon,
Koo KwangJoo KJ
Publication year - 2018
Publication title -
asia‐pacific journal of financial studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.375
H-Index - 15
eISSN - 2041-6156
pISSN - 2041-9945
DOI - 10.1111/ajfs.12217
Subject(s) - founder effect , proxy (statistics) , business , argument (complex analysis) , biology , computer science , genetics , biochemistry , machine learning , gene , genotype , haplotype
This paper investigates the effectiveness of founder CEO s on firm innovation. We examine our research question using the number of patent citations as a proxy for firm innovation and a novel dataset of founder CEO s in S&P 1,500 firms over a 15‐year period from 1994 to 2008. Our main results show that a founder CEO is associated with an increase in citations, suggesting that founder CEO s are more effective in stimulating innovation compared to professional CEO s. Overall, these findings support the argument that a founder CEO plays an important role in facilitating firm innovation through more risk‐taking.