Research On The Impact Of Executives From Overseas Backgrounds On Corporate Innovation

As members of the senior management team,executives with overseas backgrounds are decision-makers and leaders of corporate innovation.In order to deeply explore the relationship between the two,this paper constructs a theoretical model of "two departments-two products-two elements".It was found that after the company hired senior executives with overseas background,the optimal decision-making of the internal resource allocation of the company changed,and finally increased the input and output of the company’s innovative products.Accordingly,this paper puts forward the research hypothesis that executives with overseas background can promote corporate innovation.Further,based on the theoretical foundations of Upper Echelons Theory and Behavioral Finance Theory,Information Asymmetry and Principal-agent,from the perspectives of "overconfidence of managers","information mechanism",and internal and external corporate governance mechanisms,this paper attempts to analyze the path of overseas executives’ influence on corporate innovation,as well as the influencing factors of the relationship between the two.It is proposed that executives with overseas backgrounds can reduce information asymmetry to a certain extent,thereby alleviating the short-sightedness of management and promoting enterprise innovation.Under the constraints of the principal-agent problem,the internal equity incentives of enterprises and the supervision of external institutions’ shareholding further play a positive role in regulating the relationship between executives with overseas backgrounds and corporate innovation.Based on relevant theoretical analysis,this paper takes the data of A-share listed companies in China’s Shanghai and Shenzhen stock exchanges from 2008 to 2020 as a sample,selects the absolute number of executives with overseas backgrounds as the core explanatory variable,and uses corporate R&D investment and R&D output as the explained variables,and empirically test the research hypotheses in this paper through fixed-effects model and propensity score matching method.Empirical research finds that:(1)executives with overseas backgrounds have a promoting effect on innovation input and output,that is,the overall effect of executives with overseas backgrounds on corporate innovation is positive;(2)executives with overseas backgrounds can reduce the The degree of information asymmetry can alleviate the short-sightedness of management,and then play a role in promoting enterprise innovation;(3)Based on the perspective of internal incentives and external supervision,the relationship between executive shareholding and institutional shareholding on overseas executives and enterprise innovation Both play a positive regulating role;(4)For two different types of innovation,breakthrough and incremental,executives from overseas backgrounds have a significant role in promoting,but the role in promoting the latter is slightly higher than that of the former;(5)Different overseas backgrounds also have different effects on corporate innovation.Executives with overseas work backgrounds have a significant positive impact on corporate innovation,while executives with only overseas education backgrounds have no significant impact on corporate innovation;(6)While the nature of property rights is different,compared with private enterprises,the role of overseas senior executives in promoting R&D investment in enterprises is greater in state-owned enterprises,while there is no obvious difference between the two types of enterprises in promoting R&D output;(7)Whether in high-innovation enterprises or low-innovation enterprises,overseas executives can significantly promote innovation.Enterprise innovation,not because the enterprise belongs to the innovative industry,its own innovation ability is strong.Finally,based on the research conclusions of this paper and the actual situation of our country,it proposes "perfect talent introduction policy,pay attention to independent training of talents","select senior executives reasonably,pay attention to training managers’ long-term vision","formulate reasonable internal incentive mechanism,give full play to the The monitoring role of external institutions" and other corresponding policy recommendations.