Does international experience of managers bring financing benefits? Evidence from the cost of equity capital

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE Journal of Contemporary Accounting & Economics Pub Date : 2022-04-01 DOI:10.1016/j.jcae.2021.100294
Jun Hu , Wenbin Long , Ming Dai , Daifei (Troy) Yao
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引用次数: 2

Abstract

Using a sample of Chinese firms, this study examines whether and how managers’ overseas experience affects a firm’s cost of equity capital. We document a negative association between managers’ overseas experience and the cost of equity capital. Mechanism analyses indicate that companies with returnee managers have better information quality and lower systematic risk; more institutional investors, media reports, and analysts following; and higher stock liquidity, all of which lead to a lower cost of equity capital. Further analyses show that chief executive officers (CEOs) with foreign experience have a more significant impact on the cost of capital than non-CEO managers with foreign experience and that managers’ overseas work experience has a more significant impact on the cost of capital than their overseas education. We also find that the impact of managers’ overseas experience is more pronounced when that experience is gained in common law countries compared to code law countries but weaker for state-owned enterprises and firms that are cross-listed or have foreign institutional investors. Overall, the results suggest that managers’ knowledge, skills, and ethical values imprinted from overseas experience, plus eyeball effects from media and analyst attention, can reduce the cost of equity capital.

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经理人的国际经验是否会带来财务上的好处?证据来自权益资本成本
本研究以中国企业为样本,考察经理人海外经历是否影响企业股权资本成本,以及如何影响企业股权资本成本。我们记录了经理人海外经验与股权资本成本之间的负相关关系。机制分析表明,海归管理人员管理的企业具有较好的信息质量和较低的系统风险;更多机构投资者、媒体报道、分析师跟进;以及更高的股票流动性,所有这些都导致了更低的股权资本成本。进一步分析表明,具有海外经验的首席执行官(ceo)对资金成本的影响比具有海外经验的非首席执行官(ceo)对资金成本的影响更显著,并且管理者的海外工作经历对资金成本的影响比其海外教育程度的影响更显著。我们还发现,与法系国家相比,在普通法国家获得海外经验的管理者的影响更为明显,但对于国有企业和交叉上市或有外国机构投资者的公司来说,海外经验的影响较弱。总体而言,研究结果表明,管理者的知识、技能和海外经验所留下的道德价值观,加上媒体和分析师的关注所产生的眼球效应,可以降低股权资本的成本。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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CiteScore
6.00
自引率
3.00%
发文量
24
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