A Study On The Influence Of Executives' Overseas Experience On The Quality Of Internal Control

The quality of internal control has a very important impact on the production and management of enterprises,which has aroused the attention of the government,auditors,investors and so on.Therefore,the study of the influencing factors of the quality of internal control has always been a topic widely discussed by scholars.Previous studies have discussed both internal and external factors.Internal factors include corporate governance structure,management status,financial situation and executive background characteristics.External factors mainly include monetary policy,external supervision,and so on.Regional characteristics,etc.Previous studies,however,used statistical features of senior managers,such as gender,age,and education,to portray the background characteristics of executives.In order to make the study of internal control quality more accurate and complete,it is necessary to consider more proxy variables of executive background characteristics in order to make the study of internal control quality factors more accurate and complete,although this approach has some rationality,but it needs to be perfected.As a special characteristic of executive background,executive overseas experience has brought different values,risk awareness and cognitive level to senior executives,and has an important impact on the management of enterprises.In view of this,this paper is based on the previous research.Taking executive overseas experience as an important agent variable of executive background,this paper studies whether or not executive overseas experience affects internal control quality and when it affects internal control quality,and tries to make a useful contribution to the research of influencing factors of internal control quality.In order to study whether the quality of internal control is affected by the overseas experience of executives and when this influence is more significant,this paper conducts in-depth analysis from four theories,namely,high-level echelon theory,principal-agent theory,modern property rights theory and resource-based theory.Exploring and combining the empirical evidence of China's A-share listed companies in 2013-2017,the test results show that the overseas experience of executives is conducive to improving the quality of internal control,and further distinguishing overseas experience into learning and work experience and discovering overseas learning.The experience is conducive to improving the quality of internal control,but the impact of overseas work experience on the quality of internal control is not obvious.This paper also uses group regression and hierarchical regression to analyze the regulatory effect of the nature of property rights and the influence of institutional environment on the quality of internal control.The research shows that the property nature and institutional environment regulate the quality of internal control of executives' overseas experience.Impact,in comparison,the better the state-owned enterprise and institutional environment,the more favorable the overseas experience of executives is to improve the quality of internal control.On the one hand,the research of this paper enriches the research of high-level echelon theory and the application of principal-agent theory,on the other hand,it can further improve the internal control environment of enterprises,formulate reasonable human resources policies,and employ qualified senior management personnel.It is of great significance to improve the quality of internal control and effectively prevent the risk of corporate fraud.