Related Experiment Video
Updated: Sep 2, 2025

The Innovation Arena: A Method for Comparing Innovative Problem-Solving Across Groups
Published on: May 13, 2022
CEO turnover and corporate innovation: What can we learn from Chinese listed companies
1School of Economics, Zhejiang University, Hangzhou, China.
Abstract:
Using data of China's listed companies from 2000 to 2016, we employ a staggered difference-in-difference (DID) approach to identify the causal effects of CEO turnover on corporate innovation. First, we find that listed companies with CEO turnover experienced an average increase of 9.5% in the quantity of innovation and 8.9% in innovation quality after the change. The dynamic effect test supports the parallel trend condition, and the placebo test rules out the nonrandom selection issue. Second, the heterogeneity tests show that CEO turnover plays a more prominent role in promoting innovation for listed firms with CEO duality, high financial constraints, and in high-tech industries. Third, CEO turnover affects corporate innovation by driving top management team reorganization and promoting R&D input. This paper has important implications for the understanding of the role of CEO turnover in companies' innovation, as well as for strategy formulation and implementation.
Related Concept Videos
Turnover Number and Catalytic Efficiency
Chymotrypsin is a pancreatic enzyme that breaks down proteins during digestion....
Exon Recombination
Exon shuffling follows “splice frame rules.” Each exon...
Compensation Mechanisms
Respiratory Compensation
This mechanism addresses metabolic-induced pH imbalances by adjusting breathing rates. Respiratory compensation begins within minutes of detecting a pH...
Targeted Cancer Therapies
There are several types of targeted therapies against...
Creative Thinking
Divergent thinking is the...
Production Efficiency

