Hello everyone!
In the literature has been documented that new CEOs make more innovation. This effect could be estimated using a difference in difference and I have data on that from merging Execucomp and NBER. I was wondering if I could check how much of this innovation comes from the new CEO being able to transform the firm. I have a measure for transformational leadership from interviews.
What I was thinking is to get the effect estimated from diff-in-diff and then regressing that on my measure of transformational leadership.
So, I have innovation, new CEOs and old CEOs and their payment and other controls as well. My question is what part of the effect on innovation from the new CEOs could be explained by their transformational leadership. Would the method I described be the best way to get the answer to my question?
Thanks!
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