CEO locality and R&D investment efficiency: Evidence from China

IF 4.2 2区经济学 Q1 ECONOMICS

Economic Modelling Pub Date : 2025-05-20 DOI:10.1016/j.econmod.2025.107153

Yue Cao , Yancen Dong , Wenrui Chen , Jiaqian Fu , Huitao Luo

引用次数: 0

Abstract

This study investigates the impact of CEO locality on R&D investment efficiency, addressing the underexplored economic impacts of informal managerial characteristics in corporate decision-making. Using data from Chinese A-share listed firms from 2008 to 2020, we find that CEO locality significantly reduces upward distortion in R&D expense manipulation, driven by alleviating information asymmetry and managerial myopia. The mitigating effect is more pronounced in firms with higher board ownership and greater cash reserves, in regions with robust legal systems, closer to local regulatory authorities, and in cultural environments characterized by Confucian and collaborative values. Moreover, local CEOs’ efforts to curb R&D manipulation can curb opportunistic innovation activities, thereby mitigating innovation bubbles. These findings not only shed new light on the role of informal institutions in corporate governance but also provide implications for executive recruitment strategies and innovation oversight policies.

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CEO地域性与研发投资效率：来自中国的证据

本研究探讨CEO地域性对研发投资效率的影响，以解决非正式管理特征在企业决策中的经济影响。利用2008 - 2020年中国a股上市公司的数据，我们发现CEO地域性显著降低了研发费用操纵的向上扭曲，这是由缓解信息不对称和管理短视驱动的。在董事会所有权较高、现金储备较多的公司、法律体系健全的地区、与地方监管机构关系较近的地区以及以儒家思想和合作价值观为特征的文化环境中，缓解效应更为明显。此外，当地ceo遏制研发操纵的努力可以抑制机会主义创新活动，从而缓解创新泡沫。这些发现不仅揭示了非正式机构在公司治理中的作用，而且为高管招聘战略和创新监督政策提供了启示。

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

Economic Modelling ECONOMICS-

CiteScore

8.00

自引率

10.60%

发文量

295

期刊介绍： Economic Modelling fills a major gap in the economics literature, providing a single source of both theoretical and applied papers on economic modelling. The journal prime objective is to provide an international review of the state-of-the-art in economic modelling. Economic Modelling publishes the complete versions of many large-scale models of industrially advanced economies which have been developed for policy analysis. Examples are the Bank of England Model and the US Federal Reserve Board Model which had hitherto been unpublished. As individual models are revised and updated, the journal publishes subsequent papers dealing with these revisions, so keeping its readers as up to date as possible.