CEOs’ political ideologies and innovation: Evidence from US public firms

Qiang Wu; Li Zheng; Tanweer Hasan

doi:10.1080/20954816.2022.2095090

CEOs’ political ideologies and innovation: Evidence from US public firms

Qiang Wu, Li Zheng, Tanweer Hasan

Research output: Journal article publication › Journal article › Academic research › peer-review

Abstract

Using both the number of patents and the number of citations that the patents receive as the measures of innovation and using political donations as an indicator of the chief executive officer (CEO)’s political preferences, we find that (1) firms led by CEOs with and without political partisanship show no differences in terms of innovation outputs; and (2) there are no differences between firms led by Republican and Democratic CEOs when it comes to innovation. The results are robust to a propensity-score-matching regression, a firm fixed effect regression, and alternate measures of innovation. Overall, the results suggest that CEOs’ personal political ideologies do not significantly affect their innovation decisions.

Original language	English
Journal	Economic and Political Studies
DOIs	https://doi.org/10.1080/20954816.2022.2095090
Publication status	Accepted/In press - 2022

Keywords

CEO
Democrats
innovation
Political ideologies
Republicans

ASJC Scopus subject areas

Sociology and Political Science
Economics and Econometrics
Political Science and International Relations

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10.1080/20954816.2022.2095090

Cite this

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title = "CEOs{\textquoteright} political ideologies and innovation: Evidence from US public firms",

abstract = "Using both the number of patents and the number of citations that the patents receive as the measures of innovation and using political donations as an indicator of the chief executive officer (CEO){\textquoteright}s political preferences, we find that (1) firms led by CEOs with and without political partisanship show no differences in terms of innovation outputs; and (2) there are no differences between firms led by Republican and Democratic CEOs when it comes to innovation. The results are robust to a propensity-score-matching regression, a firm fixed effect regression, and alternate measures of innovation. Overall, the results suggest that CEOs{\textquoteright} personal political ideologies do not significantly affect their innovation decisions.",

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AB - Using both the number of patents and the number of citations that the patents receive as the measures of innovation and using political donations as an indicator of the chief executive officer (CEO)’s political preferences, we find that (1) firms led by CEOs with and without political partisanship show no differences in terms of innovation outputs; and (2) there are no differences between firms led by Republican and Democratic CEOs when it comes to innovation. The results are robust to a propensity-score-matching regression, a firm fixed effect regression, and alternate measures of innovation. Overall, the results suggest that CEOs’ personal political ideologies do not significantly affect their innovation decisions.

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CEOs’ political ideologies and innovation: Evidence from US public firms

Abstract

Keywords

ASJC Scopus subject areas

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