CEO overseas experiences and corporate financialization: evidence from China
Recently, Chief Executive Officers (CEOs) with overseas experiences have shown the ―star effect‖, according to upper echelons theory, CEOs’ overseas experiences might relate to corporate financialization, but there is little evidence of whether and how CEOs’ overseas experiences affect it. Given the...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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The Brooklyn Research and Publishing Institute
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/120181/ http://psasir.upm.edu.my/id/eprint/120181/1/120181.pdf |
| _version_ | 1848868132923375616 |
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| author | Zheng, Minyu Mohd Nor, Normaziah Mohd Ashhari, Zariyawati |
| author_facet | Zheng, Minyu Mohd Nor, Normaziah Mohd Ashhari, Zariyawati |
| author_sort | Zheng, Minyu |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Recently, Chief Executive Officers (CEOs) with overseas experiences have shown the ―star effect‖, according to upper echelons theory, CEOs’ overseas experiences might relate to corporate financialization, but there is little evidence of whether and how CEOs’ overseas experiences affect it. Given the increasing trend of hiring overseas CEO’s in China, the study fills in the gap in the literature by examining the effect of CEOs with overseas experiences on corporate financialization. In sum, the study employs a two-way fixed effect model to investigate the relationship between CEOs with overseas experiences and corporate financialization, a conclusion that remains valid after a series of robustness tests. CEOs with overseas experiences primarily inhibit corporate financialization by alleviating financing constraints and improving investment efficiency. Furthermore, the study finds that compared to overseas work experience, overseas study experience has a more pronounced inhibitory effect on corporate financialization. Female CEOs and young CEOs with overseas experiences exhibit a more significant inhibitory effect on corporate financialization. Cross-sectional tests show that the inhibitory effects are more pronounced in SOEs and non-polluting industries and the eastern regions, especially in the highly marketized provinces in China. |
| first_indexed | 2025-11-15T14:47:32Z |
| format | Article |
| id | upm-120181 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:47:32Z |
| publishDate | 2024 |
| publisher | The Brooklyn Research and Publishing Institute |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1201812025-09-24T07:37:13Z http://psasir.upm.edu.my/id/eprint/120181/ CEO overseas experiences and corporate financialization: evidence from China Zheng, Minyu Mohd Nor, Normaziah Mohd Ashhari, Zariyawati Recently, Chief Executive Officers (CEOs) with overseas experiences have shown the ―star effect‖, according to upper echelons theory, CEOs’ overseas experiences might relate to corporate financialization, but there is little evidence of whether and how CEOs’ overseas experiences affect it. Given the increasing trend of hiring overseas CEO’s in China, the study fills in the gap in the literature by examining the effect of CEOs with overseas experiences on corporate financialization. In sum, the study employs a two-way fixed effect model to investigate the relationship between CEOs with overseas experiences and corporate financialization, a conclusion that remains valid after a series of robustness tests. CEOs with overseas experiences primarily inhibit corporate financialization by alleviating financing constraints and improving investment efficiency. Furthermore, the study finds that compared to overseas work experience, overseas study experience has a more pronounced inhibitory effect on corporate financialization. Female CEOs and young CEOs with overseas experiences exhibit a more significant inhibitory effect on corporate financialization. Cross-sectional tests show that the inhibitory effects are more pronounced in SOEs and non-polluting industries and the eastern regions, especially in the highly marketized provinces in China. The Brooklyn Research and Publishing Institute 2024-05-22 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/120181/1/120181.pdf Zheng, Minyu and Mohd Nor, Normaziah and Mohd Ashhari, Zariyawati (2024) CEO overseas experiences and corporate financialization: evidence from China. International Journal of Humanities and Social Science, 14. pp. 162-175. ISSN 2220-8488; eISSN: 2221-0989 https://ijhssnet.com/journal/index/4983 10.2139/ssrn.4752678 |
| spellingShingle | Zheng, Minyu Mohd Nor, Normaziah Mohd Ashhari, Zariyawati CEO overseas experiences and corporate financialization: evidence from China |
| title | CEO overseas experiences and corporate financialization: evidence from China |
| title_full | CEO overseas experiences and corporate financialization: evidence from China |
| title_fullStr | CEO overseas experiences and corporate financialization: evidence from China |
| title_full_unstemmed | CEO overseas experiences and corporate financialization: evidence from China |
| title_short | CEO overseas experiences and corporate financialization: evidence from China |
| title_sort | ceo overseas experiences and corporate financialization: evidence from china |
| url | http://psasir.upm.edu.my/id/eprint/120181/ http://psasir.upm.edu.my/id/eprint/120181/ http://psasir.upm.edu.my/id/eprint/120181/ http://psasir.upm.edu.my/id/eprint/120181/1/120181.pdf |