Accounting and Finance Seminars: Ning Gao
Dr Ning Gao (University of Manchester)
G.15, 15-19 Tyndalls Park Road
Title: Innovative CEO-directors
The leadership to cultivate and promote technological innovation is one of the most important aspects of a CEO’s human capital. We investigate how this leadership affects a CEO’s attractiveness on the outside directorship market. We find a robust positive relation between innovation performance of a CEO’s own firm and the number of outside directorships held by this CEO, which is primarily determined by appointing firms that are also innovative. We also find that the presence of innovative CEO-directors on a firm’s board significantly improve its innovation and financial performance in post-appointment years. Our results demonstrate that a CEO’s expertise in cultivating and promoting innovation is highly valued in the market for outside directorship. These results also suggest that innovative CEO-directors on board constitutes an important mechanism to propagate innovation across firms.