Research On The Relationship Between Foreign Executives And Corporate Capital Structure

With the continuous evolution of China’s ‘going out’ strategy,the international demand of the market has become more obvious.As an important subject in China’s market,listed enterprises have increasingly strong demand for internationalization,and multinational enterprises have become the development goals of many listed enterprises.There are many ways for enterprises to internationalize.At present,it has become a common way for enterprises to hire foreign talents as senior executives.Foreign executives generally have strong personal abilities and experience in mature foreign markets.The introduction of foreign executives is also likely to integrate the excellent management system of foreign executives into the enterprise,realize the internationalization of the internal management system of the enterprise,and thus make the enterprise further develop.The capital structure,as an important indicator to measure the financial status and development ability of enterprises,refers to the composition of enterprise capital value and its relevant proportion,and is the result of the financing combination decision of enterprises in a certain period.However,there is the best capital structure in enterprises,that is,the capital structure with the largest shareholder wealth and the largest share price.The positive effect of foreign executives on corporate governance is also likely to enable enterprises to quickly adjust from the actual capital structure to the optimal capital structure,In order to study whether the introduction of foreign executives into enterprises can have a positive effect on adjusting the capital structure of enterprises to the target capital structure.This paper selects the sample of A-share listed enterprises from 2010 to 2021,calculates the dynamic adjustment speed of enterprise capital structure and the deviation degree of enterprise capital structure through regression by estimating the target capital structure of enterprises.Through regression analysis of the relationship between the speed of capital structure adjustment and the degree of capital structure deviation and foreign executives,and on this basis,the autocorrelation problem is suppressed,and through the grouping heterogeneity test,the correlation of foreign executives in the two groups of samples of state-owned enterprises and non-stateowned enterprises,the combination of two positions and the combination of non-two positions is analyzed.The research conclusion of this paper is that the introduction of foreign executives can effectively promote the willingness of enterprises to carry out capital structure adjustment,and their excellent management ability can reduce the agency cost of enterprises,thus reducing the cost of capital structure adjustment.Therefore,the introduction of foreign executives can improve the adjustment speed of the capital structure of enterprises,and inhibit the degree of deviation of the capital structure of enterprises.However,the promotion effect of foreign executives on the speed of capital structure adjustment and the inhibition effect on the degree of capital structure deviation are more obvious in state-owned enterprises and non-dual-purpose enterprises,which shows that in the environment where senior executives have more decision-making power,the introduction of foreign executives can effectively improve the speed of capital structure adjustment and inhibit the degree of capital structure deviation of enterprises.This shows that the introduction of foreign executives can effectively optimize the capital structure of enterprises and provide impetus for the long-term development of enterprises.