Do married CEOs Foster more efficient innovation?

Abstract

We examine the impact of CEO marital status on firm innovative efficiency. We find that firms led by married CEOs produce 8% more patents and citations per unit of investment and generate more explorative patents. Married CEOs create a culture of tolerance among their employees that is conducive to risk taking, and their firms produce more efficient innovation (1) in regions that value social capital and (2) in firms that value favorable employee treatment. We find that the tolerant culture of married CEO firms produces more efficient innovation when occurring in tandem with mechanisms facilitating a long-term strategic orientation.