1. Publications
  2. Stephen P. Ferris, Kose John, Anil K. Makhija (eds): Empirical Research in Banking and Corporate Finance. Advances in Financial Economics 21, Emerald, 2022

Management Capability and Innovation

This chapter investigates whether core competence of managers and their expansive (vs. specialized) managerial style affects firms' innovative ability, capacity, and efficiency. Using exogenous CEO departures as a natural experiment, it establishes a causal link between managerial capability and innovation. Importantly, it reveals that firms with talented managers receive significantly more nonself citations; make significantly lower self-citations and lesser citations to the others, indicating novel and explorative innovation achievements. Also, managers with higher general (specialized) ability are cited more (less) by patents from a wider range of fields. Lastly, career concern is identified as a mechanism linking higher ability and innovation.

12. September 2022

Authors Bill Francis Iftekhar Hasan Gokhan Yilmaz

See Publication

Keywords

managerial ability efficiency innovations patents

JEL Classification

G34 O31 O32 O34

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Professor Iftekhar Hasan, PhD
Professor Iftekhar Hasan, PhD
Economist

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Dr Wolfgang Sender
Dr Wolfgang Sender
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