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Identity theory in economics reveals that organisational identification motivates managers to take actions that are strongly aligned with firm interests. Nevertheless, organisational identification may also play a role in personal incentives. Leveraging the availability of CEO organisational identification data from the national internal control survey of listed firms in China, we document a positive impact of CEO organisational identification on corporate innovation. We also find that the positive impact is more pronounced for firms whose CEOs own shares, that are followed by more financial analysts, and that have higher institutional ownership. Additional analyses suggest that the interaction between CEO organisational identification and corporate innovation investment significantly enhances firm value. Overall, our study shows that CEO organisational identification is a non‐trivial driver of firm innovation and growth.

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In China, enterprises participating in targeted poverty alleviation can be provided with a strategic resource to enhance their ultimate value creation ability and directly win reputation and obtain sustainable competitive advantages, thus enhancing their innovation ability. In this study, the influence and mechanism of the participation in targeted poverty alleviation on enterprise innovation investment are empirically examined based on financing constraints with the data of nonfinancial listed companies in Shanghai and Shenzhen from 2012 to 2019 as the object. The research suggests that enterprises taking the initiative to participate in targeted poverty alleviation can first have increased innovation investment and especially enhanced exploratory innovation ability. Second, enterprises’ participation in targeted poverty alleviation can reduce financing constraints of enterprises’ innovation, improve their resource allocation efficiency, and stimulate their innovation vitality primarily through the influence of resource, reputation, and information. This study enriches the theoretical research on the economic consequences of targeted poverty alleviation and provides a reference for guiding enterprises in practice to fulfill social responsibilities to promote enterprises’ innovation vigor and boost their high-quality development.