JOURNAL OF APPLIED BUSINESS AND ECONOMICS
The Impact on Firm Value from the Announcement of the Appointment of a Chief Innovation Officer
Author(s): John R. Wingender, Jr., Joe Kirby
Citation: John R. Wingender, Jr., Joe Kirby, (2020) "The Impact on Firm Value from the Announcement of the Appointment of a Chief Innovation Officer," Journal of Applied Business and Economics, Vol. 22, Iss.10, pp. 69-80
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Dynamic markets seem to be the norm today, and firms across many industries are facing disruptions for both inside and outside their industries. The Chief Innovation Officer (CINO) is a relatively new addition to the C-Suite, with a responsibility to accelerate change and increase firm value by driving innovation initiatives. The rapid rise of this position within executive ranks follows a similar pattern that has been seen with other C-Suite level positions, such as Chief Digital Officer and Chief Data Officer. Researchers are starting to explore the firm value and performance results from these “CXO” positions, but no studies have been found regarding the CINO position. We find that firm announcements result in negative market reactions, with the move of a CEO into the CINO role, firm size, intangible assets, and educational background of the individual as significant predictors of abnormal returns.