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Ceo Power And R&D Investment, Christine Naaman, Li Sun
Ceo Power And R&D Investment, Christine Naaman, Li Sun
Faculty & Staff Research and Creative Activity
Purpose
This study aims to examine whether and how the power of a chief executive officer (CEO) relates to firm-level research and development (R&D) investment.
Design/methodology/approach
The authors use clustered standard errors ordinary least squares regression using a large sample of US firms from 1994 to 2017.
Findings
The authors find a significant negative relation between CEO power and R&D investment, suggesting that firms with more powerful CEOs are less likely to invest in R&D activities. Besides, the study finds that this significant negative relation is largely driven by firms with weaker corporate governance.
Originality/value
This study contributes to the …