Career concerns of young and old CEOs: Their effect on R&D spending in the software industry

IF 7.4 2区管理学 Q1 BUSINESS

Long Range Planning Pub Date : 2024-03-24 DOI:10.1016/j.lrp.2024.102438

Zheng Cheng , David B. Wangrow , Vincent L. Barker III

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引用次数: 0

Abstract

The age-related career concerns of Chief Executive Officers (CEOs) have generated considerable research attention over the past 25 years. Despite theory that both very young and very old CEOs may have career concerns that encourage pursuit of short-term profitability at the expense of long-term investment, the vast majority of past studies have examined whether firms with CEOs who are nearing retirement undertake less long-term investment than other firms. Using 31 years of panel data for U.S.-based public firms making branded software products (SIC 7372), we hypothesize and find that the relationship between CEO age and R&D spending is curvilinear with firms managed by either younger or older CEOs spending less on R&D as compared to their middle-aged counterparts (i.e., an inverted U-shaped relationship). These findings are consistent with early career horizon theory and suggest that the career concerns of both young and old CEOs need to be considered by (1) researchers trying to understand the effects of CEOs on strategic decision making and (2) boards of directors attempting to focus CEOs on longer-term investment opportunities.

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年轻和年长首席执行官对职业生涯的关注：他们对软件业研发支出的影响

在过去的 25 年中，首席执行官（CEO）与年龄相关的职业关切引起了大量研究的关注。尽管有理论认为，无论是非常年轻的首席执行官还是非常年长的首席执行官，都可能有鼓励追求短期利润而牺牲长期投资的职业顾虑，但过去绝大多数的研究都是考察首席执行官临近退休的公司是否比其他公司更少进行长期投资。利用 31 年的美国品牌软件产品上市公司面板数据（SIC 7372），我们假设并发现首席执行官年龄与研发支出之间存在曲线关系，即年轻或年长首席执行官管理的公司与中年首席执行官管理的公司相比，研发支出较少（即倒 U 型关系）。这些发现与早期职业视野理论相一致，并表明年轻和年长首席执行官的职业关注点需要被以下人员考虑：（1）试图了解首席执行官对战略决策影响的研究人员；（2）试图让首席执行官关注长期投资机会的董事会。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Long Range Planning Multiple-

CiteScore

13.00

自引率

7.10%

发文量

期刊介绍： Long Range Planning (LRP) is an internationally renowned journal specializing in the field of strategic management. Since its establishment in 1968, the journal has consistently published original research, garnering a strong reputation among academics. LRP actively encourages the submission of articles that involve empirical research and theoretical perspectives, including studies that provide critical assessments and analysis of the current state of knowledge in crucial strategic areas. The primary user base of LRP primarily comprises individuals from academic backgrounds, with the journal playing a dual role within this community. Firstly, it serves as a platform for the dissemination of research findings among academic researchers. Secondly, it serves as a channel for the transmission of ideas that can be effectively utilized in educational settings. The articles published in LRP cater to a diverse audience, including practicing managers and students in professional programs. While some articles may focus on practical applications, others may primarily target academic researchers. LRP adopts an inclusive approach to empirical research, accepting studies that draw on various methodologies such as primary survey data, archival data, case studies, and recognized approaches to data collection.