CEO Duality and Corporation Innovation

Abstract

Innovation activities are an essential factor to maintain enterprises’ growth. This study takes Taiwan stock market listed companies as the research object and explores the relationship between the corporation’s innovation activities and the chairman and CEO as an inventor. Furthermore, we use panel regression analysis to obtain robust results. Under such a trend of information circulation, innovation plays an important role in various emerging trends advocated in Taiwan in recent years. Therefore, this paper attempts to conduct an in-depth study on it. This paper verifies the important role of CEO duality in corporate innovation, which means that the corporation’s R&D expenditure can be further evaluated by the president and CEO. It is found that the chairman who is an inventor and CEO can reduce the corporation’s R&D expenses but can increase the number of patents of the company, which shows that the chairman and CEO who is an inventor has better R&D efficiency, but this phenomenon only exists in the electronics industry. Therefore, future research is suggested to examine real cases from different innovation activities, and although some case studies may be confusing, cross-cultural real research should also be encouraged in future work. JEL Classification: G3.