CEOs’ uncommon names and corporate innovation

I study the relationship between a Chief Executive Officer (CEO)’s uncommon name and corporate innovation. Consistent with the view that individuals with uncommon names prefer being distinctive, I document a significant positive relationship between CEO name uncommonness and corporate innovation qua...

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Bibliographic Details
Main Author: Yuqi Gu
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2147646
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Summary:I study the relationship between a Chief Executive Officer (CEO)’s uncommon name and corporate innovation. Consistent with the view that individuals with uncommon names prefer being distinctive, I document a significant positive relationship between CEO name uncommonness and corporate innovation quantity but not quality. To mitigate endogeneity concerns, I use the death of the CEO as a plausible exogenous shock and find results are robust in the difference-in-differences setting. I further show that the impact on innovation output is concentrated in the areas that are well-known to the company, of low economic value, and have a low scientific impact. Overall, the findings presented in this paper suggests that the heightened innovation activities by uncommonly named CEO exacerbate the investment distortions.
ISSN:2332-2039