Feeling right at home: Hometown CEOs and firm innovation

Extending the theories of social and place identity, we predict that CEO hometown identity has a positive significant influence on firm innovation. Our empirical evidence, from publicly traded firms in China during 2002–2016, suggests whose CEO's is same province or city as firm's headquarters tends to invest more R&D generate patent applications. results are robust fixed effects use difference-in-differences analysis instrument variable regressions mitigate endogeneity concerns. CEOs' still strong impact innovation after control for measures capital CEOs. We identify mechanisms behind relation between identity: CEOs enjoy support board directors, they willing take risks, likely have long-term visions. • The methods used Hometown risks. also find