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Academic-experienced CEOs and investment efficiency of chinese listed firms: moderating role of cash holdings
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DOI：10.1007/s11846-025-00921-x.png)
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Abstract
En 中文
Experience heavily influence the decision-making of chief executive officers (CEOs), thereby impacting the firm’s investment efficiency (IE). This study aims to analyze the relationship between the academic experience of CEOs and IE, while also examining the moderating role of cash holdings (CH). We utilize the Method of Movement Quantile Regression Analysis (MMQR) with data gathered from 791 Chinese non-financial firms listed on the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) from 2010 to 2022. The MMQR, a novel technique, reveals a positive relationship between CEOs with academic experience IE. Further analysis shows that CH are a positive moderator between the academic experience of CEOs and IE, implying that academic CEOs are more efficient at investing, thereby improving IE, especially in firms with larger cash reserves. Channel analysis suggest lower risk-taking levels (RTLs) and higher internal control quality as the two mediators through which academic experience of CEOs positively influences IE. Heterogeneity analysis indicates that the influence of academic experience of CEOs on IE is more pronounced in larger firms, SOEs, high market competition, high-tech, high growth firms, high board independence, and high external monitoring. Furthermore, our results survive a battery of robustness tests such as alternative measure of IE, system GMM model, propensity score matching (PSM) approach, 2SLS estimation, and Heckman two-stage model. Overall, our research contributes to the body of literature by offering new evidence that the academic experience of CEOs can significantly improve IE.
Keywords:
Academic-experienced CEOs
Investment efficiency
Cash holdings
Method of movement quantile regression analysis
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