“…Firms whose CEOs have “general managerial skills” (Custódio, Ferreira, & Matos, ), firms with “sensation‐seeking” CEOs (Sunder, Sunder, & Zhang, ), and firms with narcissistic CEOs (Ham et al., ) are more innovative. Similarly, firms with more convex CEO compensation (Faurel, Li, Shanthikumar, & Teoh, ), firms with higher hedge fund ownership (Wang & Zhao, ), firms that grant high levels of stock options to non‐executive employees (Chang et al., ), and firms with higher levels of financial reporting quality (Park, ) are more innovative. Flammer and Kacperczyk () find that firms incorporated in states that have adopted a constituency statute have greater levels of innovation, especially for firms operating in consumer‐focused industries.…”