Top Executives’ Overseas Background And Financial Leverage

In recent years,corporate debt defaults have occurred frequently.In 2020,there were 150 bond defaults,an increase of 14%over 2019.Excessive corporate financial leverage has become a severe challenge in China’s economic transition.In view of this phenomenon,this paper study how personal overseas background characteristics of CEO impacts enterprise financial leverage.Taking A-stock listed companies from 2011 to 2019 as a sample and based on the overseas background characteristics data of CEOs,this paper studies the impact of CEO with overseas background on enterprise financial leverage.It mainly uses the method of combining theoretical analysis and empirical research.Firstly,it clarifies the research background and significance,including practical and theoretical significance.Then collects and studies the literature in relevant fields at home and abroad,and sorts out the existing research ideas and current situation;Combined with the research results of the existing literature,based on the theory of related fields,this paper puts forward the hypothesis model of this paper.Then in the empirical research part,we use the publicly available enterprise financial data and CEOs’characteristic data to implement the corresponding regression analysis,so as to verify the hypothetical conclusions drawn in the theoretical analysis part.Through theoretical research and empirical analysis,this paper concludes that CEOs with overseas background have a significant negative relationship with corporate financial leverage,and the impact is significantly different for enterprises with different property rights;For enterprises in different industries,the significance of the impact will be different.As one of the important indicators to measure enterprise financial risk,enterprise financial leverage can provide an important reference for enterprise owners and creditors to assess and guard against possible financial risks in advance,which is conducive to improving the decision-making efficiency of investors and protecting the interests of creditors.On the other hand,this paper provides new evidence support for the appointment and selection decision-making of enterprise executives,provides a certain reference for enterprises to select appropriate senior managers,and provides a certain reference for enterprise human resource management and power structure arrangement.At the theoretical level,this paper further confirms and expands the high-level echelon theory,imprinting theory and other related theories through empirical research.