Table 3 CEO individualism and firm...

Table 3

CEO individualism and firm innovation

Panel A: CEO individualism and firm innovation (base set of controls)
Dependent variable	Log(1+patents), t+2			Log(1+citations adj.), t+2
Dependent variable	(1)	(2)	(3)	(4)	(5)	(6)
TFE	0.056*	0.078***	0.057*	0.048*	0.071***	0.079**
TFE	(1.94)	(3.17)	(1.93)	(1.65)	(2.87)	(1.99)
Log CEO age	−0.296	0.426**	0.172	−0.305	0.516**	0.307
Log CEO age	(−1.06)	(2.19)	(0.59)	(−1.06)	(2.49)	(1.48)
Log CEO tenure	0.009	−0.070***	−0.028	0.018	−0.072***	−0.066***
Log CEO tenure	(0.25)	(−3.07)	(−0.92)	(0.49)	(−2.98)	(−2.81)
Firm size	0.447***	0.125**	0.244***	0.461***	0.107**	0.129**
Firm size	(7.79)	(2.50)	(3.12)	(7.69)	(2.05)	(2.51)
R&D expenditures	4.464***	0.172	0.192	4.382***	−0.583	0.157
R&D expenditures	(5.53)	(0.22)	(0.19)	(4.85)	(−0.70)	(0.23)
Capital expenditures	3.689***	0.539	0.481	3.657***	0.488	0.466
Capital expenditures	(5.67)	(1.57)	(1.09)	(5.54)	(1.39)	(1.27)
Log firm age	0.089	−0.200*	−0.406**	0.056	−0.154	−0.124
Log firm age	(1.27)	(−1.77)	(−2.06)	(0.78)	(−1.20)	(−1.17)
Log employees	0.296***	0.356***	0.327***	0.270***	0.331***	0.317***
Log employees	(3.82)	(4.60)	(2.60)	(3.33)	(4.13)	(4.18)
Observations	10,336	10,336	7,649	10,336	10,336	10,030
Adjusted R²	0.681	0.903	0.923	0.654	0.884	0.907
Industry FE	Yes	No	No	Yes	No	No
Year FE	Yes	Yes	No	Yes	Yes	No
Firm FE	No	Yes	Yes	No	Yes	Yes
State-Year FE	No	No	No	No	No	Yes
Industry-Year FE	No	No	Yes	No	No	No

Panel A: CEO individualism and firm innovation (base set of controls)
Dependent variable	Log(1+patents), t+2			Log(1+citations adj.), t+2
Dependent variable	(1)	(2)	(3)	(4)	(5)	(6)
TFE	0.056*	0.078***	0.057*	0.048*	0.071***	0.079**
TFE	(1.94)	(3.17)	(1.93)	(1.65)	(2.87)	(1.99)
Log CEO age	−0.296	0.426**	0.172	−0.305	0.516**	0.307
Log CEO age	(−1.06)	(2.19)	(0.59)	(−1.06)	(2.49)	(1.48)
Log CEO tenure	0.009	−0.070***	−0.028	0.018	−0.072***	−0.066***
Log CEO tenure	(0.25)	(−3.07)	(−0.92)	(0.49)	(−2.98)	(−2.81)
Firm size	0.447***	0.125**	0.244***	0.461***	0.107**	0.129**
Firm size	(7.79)	(2.50)	(3.12)	(7.69)	(2.05)	(2.51)
R&D expenditures	4.464***	0.172	0.192	4.382***	−0.583	0.157
R&D expenditures	(5.53)	(0.22)	(0.19)	(4.85)	(−0.70)	(0.23)
Capital expenditures	3.689***	0.539	0.481	3.657***	0.488	0.466
Capital expenditures	(5.67)	(1.57)	(1.09)	(5.54)	(1.39)	(1.27)
Log firm age	0.089	−0.200*	−0.406**	0.056	−0.154	−0.124
Log firm age	(1.27)	(−1.77)	(−2.06)	(0.78)	(−1.20)	(−1.17)
Log employees	0.296***	0.356***	0.327***	0.270***	0.331***	0.317***
Log employees	(3.82)	(4.60)	(2.60)	(3.33)	(4.13)	(4.18)
Observations	10,336	10,336	7,649	10,336	10,336	10,030
Adjusted R²	0.681	0.903	0.923	0.654	0.884	0.907
Industry FE	Yes	No	No	Yes	No	No
Year FE	Yes	Yes	No	Yes	Yes	No
Firm FE	No	Yes	Yes	No	Yes	Yes
State-Year FE	No	No	No	No	No	Yes
Industry-Year FE	No	No	Yes	No	No	No

Panel B: individualism and firm innovation (expanded set of controls)
Dependent variable	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Dependent variable	Log(1+patents), t+2
TFE	0.079***	0.078***	0.068***	0.103***	0.051*	0.053*	0.078***	0.098***
TFE	(3.23)	(3.17)	(2.75)	(3.07)	(1.66)	(1.78)	(3.19)	(2.86)
CEO education	−0.030
CEO education	(−1.06)
Ivy League degree	0.095
Ivy League degree	(1.40)
CEO overconfidence		0.003
CEO overconfidence		(0.11)
Log CEO compensation			0.014
Log CEO compensation			(0.91)
Log Delta			0.009
Log Delta			(0.73)
Log Vega			0.003
Log Vega			(0.26)
Founder CEO				−0.097
Founder CEO				(−0.83)
General ability index (GAI)					0.021
General ability index (GAI)					(0.62)
Uncertainty avoidance (UAI)						0.003**
Uncertainty avoidance (UAI)						(1.98)
Inventor CEO							0.024	−0.446**
Inventor CEO							(0.157)	(−2.35)
Log team size								−0.144
Log team size								(−1.55)
Team MBA								0.225
Team MBA								(1.41)
Team PhD								−0.187
Team PhD								(−0.48)
Log team network								0.122**
Log team network								(2.10)
Team experience								−0.206
Team experience								(−1.59)
Log team tenure								0.047
Log team tenure								(0.58)
Observations	10,336	10,336	9,605	4,816	6,272	6,901	10,336	5,939
Adjusted R²	0.903	0.903	0.907	0.933	0.922	0.919	0.903	0.931
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Firm FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

Panel B: individualism and firm innovation (expanded set of controls)
Dependent variable	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Dependent variable	Log(1+patents), t+2
TFE	0.079***	0.078***	0.068***	0.103***	0.051*	0.053*	0.078***	0.098***
TFE	(3.23)	(3.17)	(2.75)	(3.07)	(1.66)	(1.78)	(3.19)	(2.86)
CEO education	−0.030
CEO education	(−1.06)
Ivy League degree	0.095
Ivy League degree	(1.40)
CEO overconfidence		0.003
CEO overconfidence		(0.11)
Log CEO compensation			0.014
Log CEO compensation			(0.91)
Log Delta			0.009
Log Delta			(0.73)
Log Vega			0.003
Log Vega			(0.26)
Founder CEO				−0.097
Founder CEO				(−0.83)
General ability index (GAI)					0.021
General ability index (GAI)					(0.62)
Uncertainty avoidance (UAI)						0.003**
Uncertainty avoidance (UAI)						(1.98)
Inventor CEO							0.024	−0.446**
Inventor CEO							(0.157)	(−2.35)
Log team size								−0.144
Log team size								(−1.55)
Team MBA								0.225
Team MBA								(1.41)
Team PhD								−0.187
Team PhD								(−0.48)
Log team network								0.122**
Log team network								(2.10)
Team experience								−0.206
Team experience								(−1.59)
Log team tenure								0.047
Log team tenure								(0.58)
Observations	10,336	10,336	9,605	4,816	6,272	6,901	10,336	5,939
Adjusted R²	0.903	0.903	0.907	0.933	0.922	0.919	0.903	0.931
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Firm FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

Note(s): The dependent variable in Columns (1), (3) and (5) of Panel A and in all columns of Panel B is the log of one plus the total number of patents filed by firm in year t+2; the dependent variable in Columns (2), (4) and (6) is the log of one plus the total number of citations adjusted by the year-patent class average in year t+2. Specifications in Panel A include the base set of controls and specifications in Panel B include a base set of controls and additional control variables (as shown) that address alternative explanations. Industries are classified using the four-digit SIC codes. The t-statistics based on the standard errors clustered at the CEO level are reported in parentheses.*, ** and *** indicate statistical significance at the 10%, 5% and 1% levels, respectively

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