CPA-AGRC Seminar Series/MRSS Seminar Series

Executives’ Horizon and Innovation Efficiency
Friday, 2 March 2018 - 9:00 am to 11:00 am
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Executives’ Horizon and Innovation Efficiency

Mohamed Mekhaimer
Assistant Professor, Finance
Clarkson University
Visiting Researcher, Telfer School of Management

About the Talk

We investigate the relation between executives’ horizon, internal governance, and firm’s innovation efficiency. Our results suggest that senior executives’ horizon is critical to innovation efficiency. We devise a measure of internal governance based on the difference in expected horizons between a CEO and her subordinates. Consistent with our conjecture we find robust evidence that subordinate managers can effectively monitor the CEO to focus on long-term goals for the future of the firm. Firms with elder, generalist and less dominant CEOs and better internal governance create more efficient innovation and better-quality innovations. Our results are robust to the inclusion of conventional internal and external governance measures, alternative model specifications, and different measures of executives’ horizons and innovation.

About the Speaker

Mohamed Mekhaimer is an assistant professor of finance at Clarkson University and a visiting researcher at Telfer School of Management. His research interests include Behavioral Finance, Corporate Governance, Stock Market Design and Market Microstructure. His work has been published in the Journal of Corporate Finance and Journal of International Business and Finance. Mohamed has received his Ph.D. in finance, from the University of Memphis, MSc in Finance from Plymouth University and B. Com from Mansoura University in Egypt.