The Promotional Effect of Executives' Overseas Background on Corporate Outbound Investment - Empirical Evidence Based on A-share Listed Companies

Abstract

International trade exchanges and outward investment are important issues in promoting the integration and development of the global economy and building an open world economic system. Based on the data of A-share listed companies from 2007 to 2023, this paper empirically examines the impact of executives' overseas background on enterprises' outward investment. The results show that: (1) executives' overseas background significantly increases the level of corporate outward investment, and the results remain significant after a series of stability tests. (2) The promotion effect of outward investment is heterogeneous in different groups, and the promotion effect of executives' overseas background on outward investment is more significant for the financial industry, the eastern region and the non-high-tech industry. (3) The overseas background of executives improves the outward investment of enterprises by improving the application of digital technology and alleviating financing constraints, and then improves the outward investment of enterprises. This paper is of guiding significance for the government to implement incentive policies for internationalized talents, improve financing channels for digital transformation, and build a positive cycle of talent internationalization and outward investment for enterprises.