Senior Executives’ Overseas Background,Analyst Attention And Firm Innovation Ability

The second Ten Report of the Communist Party of China emphasizes the need to accelerate the implementation of the innovation-driven development strategy.As the micro-subject of innovation activities,enterprises’ innovation ability is the key to obtain the core competitiveness of enterprises,and talents are the key to enterprise innovation.Under the background of the in-depth implementation of the strategy of strengthening the country with talents,it is relatively common for overseas talents to enter enterprises as senior executives.Based on this,this paper discusses the influence of senior executives’ overseas background on enterprises’ innovation ability from the perspective of personal characteristics.In addition,due to the information asymmetry inside and outside the enterprise,the capital market needs analysts to dig,analyze,integrate and transmit the relevant information of the enterprise,so as to alleviate the problem of information asymmetry and promote the balanced development of the capital market.So are the companies of returnee executives more likely to attract analysts’ attention? What is the interdependence between the overseas background of senior executives,the attention of analysts and the innovation ability of enterprises?First of all,this paper reviews and evaluates the literature related to the overseas background of senior executives,the attention of analysts and the innovation ability of enterprises.Secondly,based on the high-level echelon theory,information asymmetry theory and resource-based theory,the research hypothesis is proposed for the relationship between the overseas background of senior executives,the attention of analysts and the innovation ability of enterprises.Thirdly,the A-share listed companies in Shanghai and Shenzhen from 2010 to 2021 in CNRDS and CSMAR databases are selected as research objects,and A step-to-step regression model is established for empirical test,and the empirical results are analyzed.In order to ensure the authenticity and reliability of the experimental results,the replacement variable,Sobel test,Bootstrap test,lagged independent variable and propensity score matching method were used to confirm the experimental results again.In addition,this paper further divides the overseas background of senior executives into three sub-samples according to their learning background and work experience,explores the impact of the heterogeneity of overseas background on the differentiation of enterprise innovation ability,and verifies the role path of the overseas background of senior executives to attract the attention of analysts through internal control quality.The results show that: first,the overseas background of senior executives has a positive promoting effect on the innovation ability of enterprises,and the executives with both study and work experience can improve the innovation ability of enterprises.Second,the overseas background of senior executives can positively affect the follow-up decision of analysts and improve their attention to the enterprise.After further analysis,it is found that the overseas background of senior executives attracts the tracking attention of analysts by improving the quality of enterprise internal control.Third,analysts are concerned that this external supervision mechanism plays a partial mediating role between the overseas background of senior executives and the innovation capability of enterprises.Finally,suggestions are made on improving the management selection system,standardizing the analyst team and promoting the localization of overseas talents,so as to enhance the innovation ability of enterprises.