CEO International Experience in Advanced Market Economies and Firm Investment Horizon in a Transitioning Economy

IF 4.7 Q2 MATERIALS SCIENCE, BIOMATERIALS ACS Applied Bio Materials Pub Date : 2024-02-19 DOI:10.1017/mor.2023.41

Lipeng Gary Ge, Alan Muller, Tianyu Gong, Cuili Qian

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Abstract

Building on the literature on managerial myopia, we investigate how chief executive officers’ (CEOs) international experience in advanced market economies affects their firms' investment horizons in a transitioning economy. To overcome myopia, CEOs should possess the knowledge needed to manage current tasks, thereby freeing up cognitive resources for future considerations. In the context of our theorizing, we argue that international experience in advanced market economies equips CEOs with knowledge about how to deal with their current tasks of market-oriented adaptation in a transitioning economy, freeing up cognitive resources for considering longer-term investment horizons. Additionally, the effect of CEO international experience in advanced market economies on firm investment horizon is stronger under conditions that increase the cognitive burden on CEOs to perform market-oriented adaptation tasks – specifically, when there is a high scope of pro-market reform, high intensity of foreign competition, analyst coverage, and a high level of institutional ownership. Our estimation based on a matched sample of 204 Chinese CEOs during the period 2002–2019 supports the majority of our predictions. Our study contributes to research on firm investment horizon, CEO international experience, and transition economies.

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先进市场经济国家 CEO 的国际经验与转型经济体中的企业投资视野

在有关管理近视的文献基础上，我们研究了首席执行官（CEO）在发达市场经济体中的国际经验如何影响其公司在转型经济体中的投资视野。要克服近视，首席执行官应掌握管理当前任务所需的知识，从而腾出认知资源来考虑未来。根据我们的理论，我们认为，在先进市场经济体中的国际经验使首席执行官掌握了如何在转型经济中处理当前以市场为导向的适应性任务的知识，从而腾出认知资源来考虑更长远的投资前景。此外，CEO 在发达市场经济国家的国际经验对企业投资期限的影响在增加 CEO 执行市场导向适应任务的认知负担的条件下会更大，具体来说，就是在亲市场改革范围大、外国竞争强度高、分析师覆盖面广以及机构所有权水平高的情况下。我们基于 2002-2019 年间 204 位中国 CEO 的匹配样本进行了估计，结果支持了我们的大部分预测。我们的研究有助于对企业投资期限、CEO 国际经验和转型经济体的研究。

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来源期刊

ACS Applied Bio Materials Chemistry-Chemistry (all)

CiteScore

9.40

自引率

2.10%

发文量

464

期刊介绍： ACS Applied Bio Materials is an interdisciplinary journal publishing original research covering all aspects of biomaterials and biointerfaces including and beyond the traditional biosensing, biomedical and therapeutic applications. The journal is devoted to reports of new and original experimental and theoretical research of an applied nature that integrates knowledge in the areas of materials, engineering, physics, bioscience, and chemistry into important bio applications. The journal is specifically interested in work that addresses the relationship between structure and function and assesses the stability and degradation of materials under relevant environmental and biological conditions.