Do CEO Digital Characteristics Matter for Corporate Investment Efficiency?

ABSTRACT This study investigates the relationship between CEO digital characteristics and corporate investment efficiency. Specifically, we construct the CEO digital characteristics index from three dimensions, including educational background, working experience, and social network, using the Chinese A‐listed firms from 2008 to 2022. The empirical results show that CEO digital experience is positively associated with corporate investment efficiency, especially in companies with fewer financing constraints, older listing ages, and those belonging to high‐tech and non‐state‐owned enterprises. For the mechanism analysis, we find that, on the one hand, CEOs with stronger digital willingness tend to increase technology assets and enhance the structure of human capital. On the other hand, CEOs with greater digital ability are more likely to improve both innovation efficiency and operation efficiency. Both channels improve corporate investment efficiency. Our findings continue to hold for a number of robustness checks and endogeneity tests.