Does the market reward digitalization efforts? Evidence from securities analysts’ investment recommendations

This paper illustrates the construction of CEO charisma within the US stock market. By metaphorically employing the myth of the Minotaur, we discuss three forces underlying the rise of heroic CEO images in the USA: Ariadne, or charismatic leadership theory and its formulation of charisma; Theseus, or the CEOs struggling to obtain power over stock market actors; and the Minotaur, or the stock market itself and the securities analyst profession. Building on the literature on organizational symbolism, we present a qualitative study of two CEO successions, focusing on the form and content of the persona and the vision projected by CEOs and elaborated by securities analysts. The results suggest that jointly constructing charisma through discourse, CEOs and analysts enact a form of power that does not lie in top-down coercion, but rather on the emergent, active involvement and contribution of its very subjects.

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Stock Market Liberalization and Corporate Green Innovation: Evidence from China

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18073412 ◽

2021 ◽

Vol 18 (7) ◽

pp. 3412

Author(s):

Yuming Zhang ◽

Juanjuan Zhang ◽

Zhang Cheng

Keyword(s):

Stock Market ◽

Natural Experiment ◽

Financial Behavior ◽

Mechanism Analysis ◽

Market Liberalization ◽

Green Innovation ◽

Securities Analysts ◽

Stock Market Liberalization ◽

The Impact ◽

Practical Implications

Corporate green innovation is an effective way to achieve energy conservation and emission reduction. Enterprises’ willingness to pursue green innovation is increasingly affected by external factors. By using a quasi-natural experiment of China’s Stock Connect program, we investigate the impact of stock market liberalization on corporate green innovation. We find that stock market liberalization increases enterprises’ green innovation, especially for state-owned enterprises. We also find that stock market liberalization plays a stronger role in promoting the green invention patents of enterprises whose managers have overseas experience and enterprises in areas with a higher degree of openness. Our mechanism analysis suggests that stock market liberalization attracts the attention of securities analysts and increases managers’ focus on environmental protection, thereby promoting corporate green innovation. Our findings show that stock market liberalization plays an important role in the governance of firms’ non-financial behavior, which has important theoretical and practical implications.

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