{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,7,30]],"date-time":"2025-07-30T16:23:51Z","timestamp":1753892631036,"version":"3.41.2"},"reference-count":72,"publisher":"Frontiers Media SA","license":[{"start":{"date-parts":[[2022,9,13]],"date-time":"2022-09-13T00:00:00Z","timestamp":1663027200000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":["frontiersin.org"],"crossmark-restriction":true},"short-container-title":["Front. Psychol."],"abstract":"<jats:p>Managerial myopia occurs when executives value short-term benefits to the extent that firm long-run development will be obstructed. Recent studies have shown that the locality effect plays an important role in managerial myopia\u2014local United States chief executive officers (CEOs) who work near their home states are less likely to behave myopically because of more effective monitoring and greater reputation concern. In an emerging market, government policies play a more important role in the strategic planning enterprises. A local CEO may have better understanding of local government\u2019s policies thus makes less short-term decisions. This article adds to this literature by testing whether local-province CEOs in China, i.e., the CEO\u2019s native place or birthplace is in the same province as her company\u2019s headquarters, are also far-sighted. Using data on 470 publicly listed non-state-owned Chinese firms from 2014 to 2018, supportive evidence has been found that non-local-province CEOs in China tend to cut R&amp;amp;D expenses for beating analyst forecasts, reversing earnings decline, or pursuing higher returns. This article also confirms social capital as one mechanism of Chinese local-province CEOs behaving less myopically. This investigation also adds to the literature by revealing a new mechanism that CEO locality in China has a positive and direct bearing on how governments support corporate innovation.<\/jats:p>","DOI":"10.3389\/fpsyg.2022.966996","type":"journal-article","created":{"date-parts":[[2022,9,13]],"date-time":"2022-09-13T13:31:12Z","timestamp":1663075872000},"update-policy":"https:\/\/doi.org\/10.3389\/crossmark-policy","source":"Crossref","is-referenced-by-count":0,"title":["Local-province chief executive officer and managerial myopia: Evidence from China"],"prefix":"10.3389","volume":"13","author":[{"given":"Qian","family":"Chen","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Xiang","family":"Gao","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Shuzhen","family":"Niu","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Xiao","family":"Wang","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Qian","family":"Wei","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"1965","published-online":{"date-parts":[[2022,9,13]]},"reference":[{"key":"B1","first-page":"66","article-title":"The relation of managerial holdings with Tobin\u2019s Q and R&D expenditures: Evidence from Japanese firms.","volume":"10","author":"Abdullah","year":"2002","journal-title":"Multinational Bus. Rev."},{"key":"B2","doi-asserted-by":"publisher","first-page":"1097","DOI":"10.1111\/jofi.12019","article-title":"Do hostile takeovers stifle innovation? Evidence from antitakeover legislation and corporate patenting.","volume":"68","author":"Atanassov","year":"2013","journal-title":"J. Finance"},{"key":"B3","doi-asserted-by":"publisher","first-page":"153","DOI":"10.1016\/S0929-1199(98)00006-6","article-title":"R&D budgets and corporate earnings targets.","volume":"4","author":"Bange","year":"1998","journal-title":"J. Corp. Finance"},{"key":"B4","doi-asserted-by":"publisher","first-page":"1169","DOI":"10.1162\/003355303322552775","article-title":"Managing with style: The effect of managers on firm policies.","volume":"118","author":"Bertrand","year":"2003","journal-title":"Q. J. Econ."},{"key":"B5","doi-asserted-by":"publisher","first-page":"577","DOI":"10.1111\/j.1467-937X.2006.00388.x","article-title":"Executive compensation and short-termist behavior in speculative markets.","volume":"73","author":"Bolton","year":"2006","journal-title":"Rev. Econ. Stud."},{"key":"B6","doi-asserted-by":"publisher","first-page":"233","DOI":"10.1080\/01490409950202285","article-title":"Level of specialization and place attachment: An exploratory study of Whitewater recreationists.","volume":"22","author":"Bricker","year":"2000","journal-title":"Leis. Sci."},{"key":"B7","doi-asserted-by":"publisher","first-page":"1122","DOI":"10.1007\/s11142-015-9329-8","article-title":"Speaking of the short-term: Disclosure horizon and managerial myopia.","volume":"20","author":"Brochet","year":"2015","journal-title":"Rev. Account. Stud."},{"key":"B8","doi-asserted-by":"publisher","first-page":"107","DOI":"10.24136\/eq.2020.006","article-title":"Are companies managed by overconfident CEO financially constraint? Investment-cash flow sensitivity approach. Equilibrium.","volume":"15","author":"Bukalska","year":"2020","journal-title":"Q. J. Econ. Econ. Policy"},{"key":"B9","doi-asserted-by":"publisher","first-page":"19","DOI":"10.7441\/joc.2017.02.02","article-title":"The effect of corporate governance on firms\u2019 capital structure of listed companies in Sri Lanka.","volume":"9","author":"Bulathsinhalage","year":"2017","journal-title":"J. Competitiveness"},{"key":"B10","first-page":"305","article-title":"The influence of institutional investors on myopic R&D investment behavior.","volume":"73","author":"Bushee","year":"1998","journal-title":"Account. Rev."},{"key":"B11","doi-asserted-by":"publisher","first-page":"573","DOI":"10.4236\/ajibm.2014.410062","article-title":"Manager characteristics and the choice of firm \u201clow leverage\u201d: Evidence from China.","volume":"4","author":"Chen","year":"2014","journal-title":"Am. J. Ind. Bus. Manag."},{"journal-title":"Earnings guidance and managerial myopia, AAA 2006 financial accounting and reporting section (fars) meeting (Atlanta, Georgia) paper","year":"2005","author":"Cheng","key":"B12"},{"key":"B13","doi-asserted-by":"publisher","first-page":"S95","DOI":"10.1086\/228943","article-title":"Social capital in the creation of human capital.","volume":"94","author":"Coleman","year":"1988","journal-title":"Am. J. Sociol."},{"key":"B14","first-page":"147","article-title":"Can \u201clocal accent\u201d reduce agency cost? A study based on the perspective of dialects (in Chinese).","volume":"51","author":"Dai","year":"2016","journal-title":"Econ. Res. J."},{"key":"B15","doi-asserted-by":"publisher","first-page":"51","DOI":"10.1016\/0167-7187(91)90058-S","article-title":"Executive incentives and horizon problem: An empirical investigation.","volume":"14","author":"Dechow","year":"1991","journal-title":"J. Account. Econ."},{"key":"B16","doi-asserted-by":"publisher","first-page":"5","DOI":"10.7441\/joc.2021.01.01","article-title":"Toward innovation-driven competitiveness across African countries: An analysis of efficiency of R&D expenditures.","volume":"13","author":"Dobrzanski","year":"2021","journal-title":"J. Competitiveness"},{"key":"B17","doi-asserted-by":"publisher","first-page":"425","DOI":"10.24136\/oc.2021.015","article-title":"Does the life cycle affect earnings management and bankruptcy?","volume":"12","author":"Durana","year":"","journal-title":"Oeconomia Copernicana"},{"key":"B18","doi-asserted-by":"publisher","first-page":"20","DOI":"10.22381\/emfm16120212","article-title":"Artificial intelligence data-driven internet of things systems, real-time advanced analytics, and cyber-physical production networks in sustainable smart manufacturing.","volume":"16","author":"Durana","year":"","journal-title":"Econ. Manag. Financ. Mark."},{"key":"B19","doi-asserted-by":"publisher","first-page":"1516","DOI":"10.1176\/ajp.153.12.1516","article-title":"Psychiatric implications of displacement: Contributions from the psychology of place.","volume":"153","author":"Fullilove","year":"1996","journal-title":"Am. J. Psychiatry"},{"key":"B20","doi-asserted-by":"publisher","first-page":"468","DOI":"10.1086\/261826","article-title":"Optimal incentive contracts in the presence of career concerns: Theory and evidence.","volume":"100","author":"Gibbons","year":"1992","journal-title":"J. Polit. Econ."},{"journal-title":"CEO contract horizon and innovation. London","year":"2017","author":"Gonzalez-Uribe","key":"B21"},{"key":"B22","doi-asserted-by":"publisher","first-page":"3","DOI":"10.1016\/j.jacceco.2005.01.002","article-title":"The economic implications of corporate financial reporting.","volume":"40","author":"Graham","year":"2005","journal-title":"J. Account. Econ."},{"key":"B23","first-page":"84","article-title":"Study on the heterogeneity of financialization of non-financial corporations in China: Discussion on financial development and US, UK and Japan \u201cgo into reverse\u201d [in Chinese].","volume":"9","author":"Guo","year":"2018","journal-title":"Ind. Econ. Rev."},{"key":"B24","doi-asserted-by":"publisher","first-page":"409","DOI":"10.1016\/j.jenvp.2010.04.006","article-title":"Pro-environmental behaviors and park visitors: The effect of place attachment.","volume":"30","author":"Halpenny","year":"2010","journal-title":"J. Environ. Psychol."},{"key":"B25","doi-asserted-by":"publisher","first-page":"856","DOI":"10.1016\/j.jfineco.2013.04.001","article-title":"The dark side of analyst coverage: The case of innovation.","volume":"109","author":"He","year":"2013","journal-title":"J. Financ. Econ."},{"key":"B26","doi-asserted-by":"publisher","first-page":"38","DOI":"10.2307\/2109824","article-title":"R&D and internal finance: A panel study of small firms in high-tech industries.","volume":"76","author":"Himmelberg","year":"1994","journal-title":"Rev. Econ. Stat."},{"key":"B27","doi-asserted-by":"publisher","first-page":"324","DOI":"10.2307\/3003457","article-title":"Moral hazard in teams.","volume":"13","author":"Holmstrom","year":"1982","journal-title":"Bell J. Econ."},{"journal-title":"Local CEOs, career concerns, and voluntary disclosure. Journal of business finance","year":"2018","author":"Hu","key":"B28"},{"key":"B29","doi-asserted-by":"publisher","first-page":"21","DOI":"10.1257\/jep.2.1.21","article-title":"Takeovers: Their causes and consequences.","volume":"2","author":"Jensen","year":"1988","journal-title":"J. Econ. Perspect."},{"key":"B30","doi-asserted-by":"publisher","first-page":"305","DOI":"10.1016\/0304-405X(76)90026-X","article-title":"Theory of the firm: Managerial behavior, agency costs and ownership structure.","volume":"3","author":"Jensen","year":"1976","journal-title":"J. Financ. Econ."},{"key":"B31","doi-asserted-by":"publisher","first-page":"727","DOI":"10.1111\/1475-679X.00069","article-title":"Does meeting earnings expectations matter? Evidence from analyst forecast revisions and share prices.","volume":"40","author":"Kasznik","year":"2002","journal-title":"J. Account. Res."},{"key":"B32","doi-asserted-by":"publisher","first-page":"41","DOI":"10.7441\/joc.2021.02.03","article-title":"Governance quality, entrepreneurship and economic growth.","volume":"13","author":"Khyareh","year":"2021","journal-title":"J. Competitiveness"},{"key":"B33","doi-asserted-by":"publisher","first-page":"23","DOI":"10.22381\/EMFM15320203","article-title":"Networked, smart, and responsive devices in industry 4.0 manufacturing systems.","volume":"15","author":"Kliestik","year":"2020","journal-title":"Econ. Manag. Financ. Mark."},{"key":"B34","doi-asserted-by":"publisher","first-page":"38","DOI":"10.26552\/ems.2021.2.38-51","article-title":"Business performance and financial health assessment through artificial intelligence.","volume":"15","author":"Krulicky","year":"2021","journal-title":"Ekonomicko-Manazerske Spektrum"},{"key":"B35","doi-asserted-by":"publisher","first-page":"227","DOI":"10.2308\/accr-52555","article-title":"East, west, home\u2019s best: Do local CEOs behave less myopically?","volume":"95","author":"Lai","year":"2020","journal-title":"Account. Rev."},{"key":"B36","doi-asserted-by":"publisher","first-page":"20","DOI":"10.22381\/jsme9120212","article-title":"Internet of things, smart devices, industrial artificial intelligence, and real-time sensor networks in sustainable cyber-physical production systems.","volume":"9","author":"Lazaroiu","year":"2021","journal-title":"J. Self Govern. Manag. Econ."},{"key":"B37","doi-asserted-by":"publisher","first-page":"429","DOI":"10.1080\/10438599.2016.1213504","article-title":"The impact of R&D subsidy on innovation: Evidence from New Zealand firms.","volume":"26","author":"Le","year":"2016","journal-title":"Econ. Innov. New Technol."},{"key":"B38","doi-asserted-by":"publisher","first-page":"271","DOI":"10.1108\/CFRI-01-2019-0007","article-title":"Managerial overconfidence, firm transparency, and stock price crash risk: Evidence from an emerging market.","volume":"10","author":"Liang","year":"2020","journal-title":"China Finance Rev. Intl."},{"key":"B39","doi-asserted-by":"publisher","first-page":"353","DOI":"10.1016\/S0929-1199(01)00050-5","article-title":"Corporate investment myopia: A horserace of the theories.","volume":"8","author":"Lundstrum","year":"2002","journal-title":"J. Corporate Finance"},{"key":"B40","doi-asserted-by":"publisher","first-page":"313","DOI":"10.2308\/accr.2001.76.3.313","article-title":"The effect of missing a quarterly earnings benchmark on the CEO\u2019s annual bonus.","volume":"76","author":"Matsunaga","year":"2001","journal-title":"Account. Rev."},{"key":"B41","doi-asserted-by":"publisher","first-page":"87","DOI":"10.26552\/ems.2021.2.87-98","article-title":"Value-based management: A case study of Visegrad Four countries.","volume":"15","author":"Mitan","year":"2021","journal-title":"Ekonomicko-manazerske spektrum"},{"key":"B42","doi-asserted-by":"publisher","first-page":"1469","DOI":"10.1111\/j.1540-6261.1985.tb02395.x","article-title":"Managerial incentives for short-term results.","volume":"40","author":"Narayanan","year":"1985","journal-title":"Finance"},{"key":"B43","doi-asserted-by":"publisher","first-page":"116","DOI":"10.1111\/j.1467-8683.2008.00672.x","article-title":"Board independence and real earnings management: The case of R&D expenditure.","volume":"16","author":"Osma","year":"2008","journal-title":"Corporate Governance Intl. Rev."},{"key":"B44","doi-asserted-by":"publisher","first-page":"19","DOI":"10.1016\/j.dsm.2021.12.002","article-title":"Machine learning-based approach: Global trends, research directions, and regulatory standpoints.","volume":"4","author":"Pugliese","year":"2021","journal-title":"Data Sci. Manag."},{"key":"B45","first-page":"30","article-title":"Empirical research on CEOs\u2019 career concerns and investment myopia [in Chinese].","volume":"5","author":"Rao","year":"2012","journal-title":"J. Manag. Sci. China"},{"journal-title":"Place and placelessness.","year":"1976","author":"Relph","key":"B46"},{"key":"B47","doi-asserted-by":"publisher","first-page":"83","DOI":"10.1016\/j.socec.2005.11.001","article-title":"The production of social capital in US counties.","volume":"35","author":"Rupasingha","year":"2006","journal-title":"J. Soc. Econ."},{"key":"B48","doi-asserted-by":"publisher","first-page":"391","DOI":"10.1177\/1042258718806627","article-title":"Are founder-led firms less susceptible to managerial myopia?","volume":"44","author":"Schuster","year":"2020","journal-title":"Entrepr. Theory Pract."},{"key":"B49","doi-asserted-by":"publisher","first-page":"96","DOI":"10.2139\/ssrn.2550410","article-title":"Financialization and corporate investments: The Indian case.","volume":"61","author":"Sen","year":"2015","journal-title":"Rev. Keynesian Econ."},{"key":"B50","first-page":"84","article-title":"Experiences and implications of government departments supporting enterprise innovation under innovation-driven strategy [in Chinese].","volume":"5","author":"Shu","year":"2017","journal-title":"Future Dev."},{"key":"B51","doi-asserted-by":"publisher","first-page":"313","DOI":"10.1023\/A:1020294523516","article-title":"Growth expectations and stock returns or don\u2019t let an earnings torpedo sink your portfolio.","volume":"7","author":"Skinner","year":"2002","journal-title":"Rev. Account. Stud."},{"key":"B52","doi-asserted-by":"publisher","first-page":"61","DOI":"10.1086\/261524","article-title":"Takeover threats and managerial myopia.","volume":"96","author":"Stein","year":"1988","journal-title":"J. Pol. Econ."},{"key":"B53","doi-asserted-by":"publisher","first-page":"655","DOI":"10.2307\/2937861","article-title":"Efficient capital markets, inefficient firms: A model of myopic corporate behavior.","volume":"104","author":"Stein","year":"1989","journal-title":"Q. J. Econ."},{"key":"B54","first-page":"20","article-title":"Risk preference of executive shareholders and R&D investment motivation [in Chinese].","volume":"2","author":"Tang","year":"2010","journal-title":"Contemp. Econ. Manag."},{"key":"B55","doi-asserted-by":"publisher","first-page":"126","DOI":"10.26552\/ems.2021.2.126-137","article-title":"Effect of strategic alliance and partnership on the survival of MSMEs post COVID-19 pandemic.","volume":"15","author":"Tijani","year":"2021","journal-title":"Ekonomicko-Manazerske Spektrum"},{"key":"B56","doi-asserted-by":"publisher","first-page":"151","DOI":"10.2307\/213970","article-title":"Place: An experiential perspective.","volume":"65","author":"Tuan","year":"1975","journal-title":"Geogr. Rev."},{"key":"B57","doi-asserted-by":"publisher","first-page":"581","DOI":"10.31228\/osf.io\/gvt6a","article-title":"The long and the short: Portfolio turnover ratios & mutual fund investment time horizons.","volume":"43","author":"Tucker","year":"2018","journal-title":"The Journal of Corporation Law"},{"key":"B58","doi-asserted-by":"publisher","first-page":"639","DOI":"10.24136\/eq.2021.023","article-title":"Distinctive determinants of financial indebtedness: Evidence from Slovak and Czech enterprises. Equilibrium.","volume":"16","author":"Valaskova","year":"","journal-title":"Q. J. Econ. Econ. Policy"},{"key":"B59","doi-asserted-by":"publisher","first-page":"631","DOI":"10.24136\/oc.2021.021","article-title":"Quo Vadis, earnings management? Analysis of manipulation determinants in Central European environment.","volume":"12","author":"Valaskova","year":"","journal-title":"Oeconomia Copernicana"},{"key":"B60","doi-asserted-by":"publisher","first-page":"9","DOI":"10.22381\/jsme9220211","article-title":"Deep learning-assisted smart process planning, cognitive automation, and industrial big data analytics in sustainable cyber-physical production systems.","volume":"9","author":"Valaskova","year":"","journal-title":"J. Self-Governance Manag. Econ."},{"journal-title":"2011 Report on Business Environment Index of Chinese Provinces [in Chinese].","year":"2013","author":"Wang","key":"B61"},{"journal-title":"2017 Report on Business Environment Index of Chinese Provinces [in Chinese].","year":"2017","author":"Wang","key":"B62"},{"key":"B63","first-page":"14","article-title":"On non-governmental business lacking foresight action [in Chinese].","volume":"3","author":"Wu","year":"2001","journal-title":"J. Hubei College Finance Econ."},{"key":"B64","first-page":"40","article-title":"Executive compensation: Incentives or self-interests? Evidence from listed firms in China [in Chinese].","volume":"11","author":"Wu","year":"2010","journal-title":"Account. Res."},{"key":"B65","first-page":"137","article-title":"A Research into managerial self-concern and myopia behavior: From the perspective of security investment of listed companies [in Chinese].","volume":"1","author":"Wu","year":"2012","journal-title":"Econ. Surv."},{"key":"B66","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2021.112720","article-title":"Government subsidy and corporate green innovation - Does board governance play a role?","volume":"161","author":"Xia","year":"2022","journal-title":"Energy Policy"},{"key":"B67","doi-asserted-by":"publisher","first-page":"161","DOI":"10.7441\/joc.2010.01.10","article-title":"The impact of intellectual capital on firm performance: A modified and extended VAIC model.","volume":"12","author":"Xu","year":"2020","journal-title":"J. Competitiveness"},{"key":"B68","first-page":"56","article-title":"Research on the influences of the remuneration regulation system on the CEOs of the SOEs: A tale of four reactions [in Chinese].","volume":"7","author":"Yan","year":"2018","journal-title":"Econ. Manag. J."},{"key":"B69","doi-asserted-by":"publisher","first-page":"893","DOI":"10.1093\/revfin\/hhl046","article-title":"Institutional investors and equity returns: Are short-term institutions better informed?","volume":"22","author":"Yan","year":"2009","journal-title":"Rev. Financial Stud."},{"key":"B70","doi-asserted-by":"publisher","first-page":"289","DOI":"10.1111\/jpim.12564","article-title":"The more the merrier? Chinese government R&D subsidies, dependence, and firm innovation performance.","volume":"38","author":"Yi","year":"2021","journal-title":"J. Prod. Innov. Manag."},{"journal-title":"Property rights, governance structure and enterprise efficiency: A probe into the source of low efficiency of state-owned enterprises [in Chinese].","year":"2002","author":"Zhang","key":"B71"},{"key":"B72","first-page":"163","article-title":"Managerial myopia, accounting conservatism and innovation [in Chinese].","volume":"20","author":"Zhong","year":"2017","journal-title":"Nankai Bus. Rev."}],"container-title":["Frontiers in Psychology"],"original-title":[],"link":[{"URL":"https:\/\/www.frontiersin.org\/articles\/10.3389\/fpsyg.2022.966996\/full","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2022,9,13]],"date-time":"2022-09-13T13:31:37Z","timestamp":1663075897000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.frontiersin.org\/articles\/10.3389\/fpsyg.2022.966996\/full"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2022,9,13]]},"references-count":72,"alternative-id":["10.3389\/fpsyg.2022.966996"],"URL":"https:\/\/doi.org\/10.3389\/fpsyg.2022.966996","relation":{},"ISSN":["1664-1078"],"issn-type":[{"type":"electronic","value":"1664-1078"}],"subject":[],"published":{"date-parts":[[2022,9,13]]},"article-number":"966996"}}