How CEO/CMO characteristics affect innovation and stock returns: findings and future directions

Ya You*, Shuba Srinivasan, Koen Pauwels, Amit Joshi

*Corresponding author for this work

Research output: Contribution to JournalReview articleAcademicpeer-review


Investor stock market response has received a great deal of attention in the marketing literature. However, firms are not faceless corporations; individuals such as CEOs set their strategies. Upper echelon and strategic leadership theories hold that chosen strategies derive from these individuals’ opinions, which are a function of their personalities, demographics, experiences, and values. Building on recent literature, the authors propose how CEO characteristics can influence innovation and stock returns. Investors are motivated by cash flow expectations—in particular, the prospect of increasing and accelerating future cash flows, reducing associated risks, and increasing residual value. This systematic review focuses on four main characteristics—personality, demographics, experience and compensation—to arrive at a set of propositions on innovation and stock returns. After reviewing the extensive literature on CEO characteristics, the authors outline the emerging findings on CMO characteristics; propose future research directions on CEO and CMO characteristics, innovations, and stock returns; and offer implications for practice.

Original languageEnglish
Pages (from-to)1229-1253
Number of pages25
JournalJournal of the Academy of Marketing Science
Issue number6
Publication statusPublished - 1 Nov 2020


  • CEO
  • CMO
  • Compensation
  • Demographics
  • Experience
  • Innovation
  • Personality
  • Stock returns


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