Returnee Talent and Corporate Investment: Evidence from China

European Accounting Review, Forthcoming

44 Pages Posted: 22 Nov 2016

See all articles by Yunhao Dai

Yunhao Dai

Huazhong University of Science and Technology (Formerly Tongi Medical University)

Dongmin Kong

Department of Finance, Huazhong University of Science and Technology; School of Finance, Zhongnan University of Economics and Law

Shasha Liu

School of Management, Jinan University

Date Written: November 14, 2016

Abstract

We manually collected a dataset comprising the overseas experiences of management teams of listed Chinese firms and investigated the effects of returnee talent on firm investment efficiency (InvEff). The results show that 1) returnees improve InvEff significantly, especially for firms that experience overinvestment; 2) the central-government-controlled state-owned enterprises (SOEs) benefit the most from overseas returnees; and 3) foreign experience in countries with effective governance and low corruption levels have significantly marginal effects on the improvement in InvEff. This study highlights a new channel of international knowledge spillover and practically guides the introduction of talent policy in emerging markets.

Keywords: Human Capital; Returnee Talent; Investment Efficiency; China

JEL Classification: G31; G32; O15

Suggested Citation

Dai, Yunhao and Kong, Dongmin and Liu, Shasha, Returnee Talent and Corporate Investment: Evidence from China (November 14, 2016). European Accounting Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2872791

Yunhao Dai

Huazhong University of Science and Technology (Formerly Tongi Medical University) ( email )

1037 Luoyu Rd
Wuhan, Hubei 430074
China

Dongmin Kong (Contact Author)

Department of Finance, Huazhong University of Science and Technology ( email )

Wuhan, Hubei 430074
China

School of Finance, Zhongnan University of Economics and Law ( email )

Wuhan, Hubei 430073
China

Shasha Liu

School of Management, Jinan University ( email )

No. 601, West Huangpu Road
Guangzhou, Guangdong 510632
China

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
88
Abstract Views
1,164
rank
316,847
PlumX Metrics