Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2089708
The effects of executives with foreign experience on capital structure adjustments toward targets: Evidence from China
Yan Gu
Hung-Yi Huang
Kung-Cheng Ho
Shengnan Liu
Sažetak
This study discusses the impact of executives with foreign experience
on decisions involving corporate capital structures. Based on
a sample of Chinese A-share listed companies, this study finds
that firms with (more) executives with foreign experience adjust
to the optimal capital structure faster. The effect exists mainly for
over-levered firms that need to deleverage. The empirical results
remain robust when using alternative methods to estimate target
leverage, excluding the effects of mechanical adjustments, controlling
the impact of corporate governance, and using the full
sample to test asymmetric effects. In addition, firms managed by
executives with foreign experience tend to maintain low leverage
for a long time. Overall, the results show that executives with foreign
experience help companies adopt more efficient and conservative
capital structure adjustment decisions. The results enrich
the literature on the impact of foreign experience on corporate
decision-making.
Ključne riječi
Executives with foreign experience; capital structure adjustment; dynamics of capital structure; underlevered firms; over-levered firms; corporate governance
Hrčak ID:
304174
URI
Datum izdavanja:
31.3.2023.
Posjeta: 451 *