Research On The Influence Of The Similarity Of Background Characteristics Between CEO And Directors On The Efficiency Of Foreign Investment Of The Company

Economic globalization has become the most fundamental development trend of the world economy.Since 2002,China’s “going out” strategy is at a stage of continuous development,and foreign direct investment has become an important part of the development strategy of listed companies.According to data released by the Ministry of Commerce of the People’s Republic of China,China’s total foreign direct investment increased from 2.85 billion dollars in 2003 to 129.85 billion dollars in 2018,with an average annual growth rate of 29.00%.It is clear that China’s foreign direct investment flows are growing rapidly.In terms of investment scale,China has gradually developed into an economic powerhouse for foreign investment.However,through the analysis of the investment quality of China’s foreign direct investment companies,it is found that the inefficient capital investment in the capital market accounts for up to 55%,which indicates that the listed company’s risk identification and decision-making ability is weak,which is not only not conducive to the company’s development,but also to a certain extent,it caused a waste of resources.Therefore,at present,China,as the world’s second largest economic entity,still has a certain gap with the mature capital markets of developed countries in terms of foreign direct investment efficiency indicators.Over the years,the observation and demonstration of the factors affecting the efficiency of listed companies’ foreign investment have been the hotspots and difficulties of scholars at home and abroad.As one of the important strategic decisions of enterprises,OFDI is not only restricted by factors such as the external environment and internal characteristics of the enterprise,but also by the personal characteristics of managers at the strategic decision-making level.Based on the data of Chinese listed companies from 2010-2017,the paper uses the OLS method to analyze the factors affecting the efficiency of listed companies’ foreign investment,and further analyzes the regulation of the property rights of listed companies.The research results show that there is a significant correlation between the similarity of background characteristics between CEOs and directors of listed companies and the company’s external investment efficiency.Among them,gender similarity,similarity degree of age and similarity degree of education have a significant negative correlation with the efficiency of listed companies’ foreign investment.There is a significant positive correlation between the similarity of employment years and the efficiency of foreign investment.In addition,the nature of property rights of listed companies has a significant positive adjustment effect on the impact of gender similarity and time similarity on the company’s investment efficiency,and has a significant negative adjustment effect on the degree of education similarity.From the overall perspective,this paper analyzes the impact of CEO and director background characteristics on the external investment efficiency of listed companies,which is different from the influence of scholars on individual characteristics.It not only enriches the relevant theories of the factors affecting the external investment efficiency of listed companies,but also provides a scientific basis for companies to hire senior executives such as CEOs and make relevant foreign investment decisions.