Does Foreign Experience Influence Executive Compensation in Emerging Markets?

Machado, Vagner Naysinger; Sonza, Igor Bernardi; Nakamura, Wilson Toshiro; Mendes, Johnny Silva

doi:10.1080/1540496x.2022.2164463

Cited by 2 publications

(1 citation statement)

References 34 publications

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“…Based on upper echelons theory and imprinting theory, foreign background as an important individual characteristic of executives affects their cognitive ability and behavioral choices, affecting their strategic and business decisions in local firms. Existing literature mainly focuses on the effects of executives’ foreign background on firm innovation (e.g., Conyon et al., 2019; Xiang & Yi, 2022; Yuan & Wen, 2018), corporate sustainable development (e.g., Ullah et al., 2022; Wang et al., 2022), information disclosure (e.g., Liao et al., 2022; Hussain et al., 2022), executive compensation (e.g., Machado et al., 2023), social responsibility (e.g., Slater & Dixon‐Fowler, 2009), firm performance (e.g., Giannetti et al., 2015), corporate donations (e.g., Su et al., 2020), and technical advancement (e.g., De La Tour et al., 2011).…”

Section: Introductionmentioning

confidence: 99%

Association between foreign background of executives and firm goodwill impairment risk

Su,

Wang,

2023

Bulletin of Econ Res

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In recent years, the wave of mergers and acquisitions in the capital market has risen. As a result, the goodwill impairment (GI) of listed firms has been frequent. This study empirically examines the association between the foreign‐background characteristics of executives and firm GI risk using data from 2008 to 2020 for A‐share listed firms in Shanghai and Shenzhen, China. The results show that there is a positive relationship between the foreign background of executives and the risk of GI of firms. Further results show that executives with foreign working backgrounds have a more significant positive impact on GI risk than executives with foreign study backgrounds. In addition, the positive effect of the foreign background of executives of non‐state‐owned enterprises (SOEs) on GI risk is more profound than that of SOEs. However, internal controls and institutional investors’ shareholdings weaken the positive association between executives’ foreign backgrounds and GI risk. This study provides evidence of the determinants of GI in firms and the economic consequences of the foreign‐background characteristics of executives.

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