Table 5

CEO individualism and firm innovation quality

Panel A: top cited patents
Dependent variableTop 10% patentsTop 5% patentsTop 1% patents
t+2t+1t+2t+1t+2t+1
(1)(2)(3)(4)(5)(6)
TFE3.166**2.226**1.045**1.188**0.212*0.207*
(2.33)(2.26)(2.12)(2.32)(1.91)(1.94)
Observations10,33610,33610,33610,33610,33610,336
Adjusted R20.6540.7330.7480.7220.6990.688
Control variablesYesYesYesYesYesYes
Year FEYesYesYesYesYesYes
Firm FEYesYesYesYesYesYes
Panel B: market value of patents
Dependent variableReal market value of patentsLog real market value of patentsNominal market value of patentsLog nominal market value of patents
t+2t+2t+2t+2
(1)(2)(3)(4)
TFE173.188*0.120**403.852**0.128**
(1.74)(2.36)(2.21)(2.28)
Observations10,33610,33610,33610,336
Adjusted R20.8140.8730.8280.865
Control variablesYesYesYesYes
Year FEYesYesYesYes
Firm FEYesYesYesYes

Note(s): The dependent variables in Panel A are the number of top 10%, top 5% and top 1% cited patents. Control variables include the logarithm of CEO age, the logarithm of tenure, firm size, the logarithm of firm age, capital expenditure, R&D expenditure and the logarithm of employees. Firm- and year-fixed effects are included in all columns. Standard errors are clustered at the CEO level. The t-statistics are in parentheses.*, ** and *** indicate statistical significance at the 10%, 5% and 1% levels, respectively. Panel B of Table 5 reports the regression of TFE on the market value of innovation. The dependent variables in Columns (1) and (2) are the real and the logarithm of the real value of patents. The dependent variables in Columns (3) and (4) are the nominal and the logarithm of the nominal value of patents. Control variables include the logarithm of CEO age, the logarithm of tenure, firm size, the logarithm of firm age, capital expenditure, R&D expenditure and the logarithm of employees. Firm and year-fixed effects are included in all columns. Standard errors are clustered at the CEO level. The t-statistics are in parentheses.*, ** and *** indicate statistical significance at the 10%, 5% and 1% levels, respectively

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