Experienced CEO and Factor Productivity Improvement: Re‐Examination of Experience Trap

Abstract

We examine the role of experienced CEO in the CEO succession and their contributions to the performance of focal firms. We utilize the propensity score matching with difference in differences (PSM-DID) model to evaluate to what extent experienced CEO succession affects the total factor productivity (TFP) growth. Based on the analysis of 1,675 listed manufacturing companies in China, results show that experienced CEO in succession significantly improves firms’ TFP. Our analysis demonstrates that, on average, the event of hiring an experienced CEO succession yields a 3.1% increase in TFP improvement compared with nonsuccession firms. This positive effect can be continued for three years. Furthermore, the heterogeneous effect of experienced CEO succession on TFP is shown between different categories of focal firms (i.e., high-tech versus low-tech enterprises).

Exploring the Impact of the Digital Economy on Green Total Factor Productivity—Evidence from Chinese Cities

“…The digital economy effectively improves resource utilization, resulting in an upgraded industrial structure and a better optimized economic structure through digital information and knowledge. It is considered a vital development engine of GTFP [22][23][24]. To sustain economic growth while prioritizing environmental performance and energy conservation, and, at the same time, inspire other countries to achieve sustainable development, comprehensive research on the relationship between the digital economy and GTFP should be conducted to help China take a greener development path.…”

Research on the Path of Total Factor Productivity Improvement in Multinational Enterprises: Based on fsQCA Methodology and TOE Framework

“…Li et al (2022) and Zhang & Dong (2023) also found and verified from the perspective of firms' digital transformation that it has an enabling driver for the driving utility of enterprise total factor productivity improvement. Second, at the organizational level, many studies have explored the effect of the characteristics of the executive team or the board of directors on the high-quality development of enterprises based on the high-ranking echelon theory, e.g., Zhu et al (2022) investigated that the rich experience of the CEO helps to enhance the total factor productivity of the enterprise. In addition, some scholars have also explained the impact of financing constraints on firms' total factor productivity from the perspective of financing constraints (Ren & Lv, 2014).…”