Affiliation of Author(s):国际商学院
Journal:International Review of Economics & Finance
Funded by:国家自然科学基金项目
Abstract:We examine whether managerial foreign experience facilitates corporate outward foreign direct investment (OFDI) decision. Using hand-collected manager biography data from Chinese public companies, we find that there is a positive association between managerial foreign experience and OFDI. Mechanism analysis shows that returnee managers can improve corporate willingness of risk-taking, and thus promote the probability of OFDI. Moreover, the facilitation effect is greater when firms have managers with foreign experience obtained in the OFDI destination countries. While both foreign work and study experience promote OFDI, the effect is more significant when returnee managers hold senior positions. Lastly, managerial foreign experience is associated with improved performance of outward investments. This study enriches the emerging literature on cross-country knowledge transfer in international business by providing evidence on the economic consequences of managerial experience.
Indexed by:Journal paper
Volume:1
ISSN No.:1059-0560
Translation or Not:no
Date of Publication:2023-07-17
First Author:wenwen
Co-author:Tingyu Zhao,Yun Ke,Mengjiao Zhang
