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CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China

Recently, Chief Executive Officers (CEOs) with overseas experiences show the “star effect”, according to upper echelons theory, CEOs’ overseas experiences might relate to corporate financialization, but there is little evidence of whether and how overseas CEOs affect it. Given the increasing trend o...

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Main Authors: Mohd Nor, Normaziah, Zheng, Minyu, Mohd Ashhari, Zariyawati
Format: Article
Language:English
Published: UUM Press 2024
Subjects:
HG Finance
Online Access:https://repo.uum.edu.my/id/eprint/32064/1/JTOM%2019%2002%202024%2020-40.pdf
https://repo.uum.edu.my/id/eprint/32064/
https://e-journal.uum.edu.my/index.php/jtom
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spelling my.uum.repo.320642025-02-18T13:21:04Z https://repo.uum.edu.my/id/eprint/32064/ CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China Mohd Nor, Normaziah Zheng, Minyu Mohd Ashhari, Zariyawati HG Finance Recently, Chief Executive Officers (CEOs) with overseas experiences show the “star effect”, according to upper echelons theory, CEOs’ overseas experiences might relate to corporate financialization, but there is little evidence of whether and how overseas CEOs affect it. Given the increasing trend of hiring overseas CEO in China, the study fills in the gap in the literature by examining the effect of CEOs with overseas experiences on corporate financialization. In sum, the study employs a two-way fixed effect model and SYS-GMM model to investigate the relationship between CEOs with overseas experiences and corporate financialization. Our findings still hold after the endogeneity disposal with a two-way fixed effect regression by lagging variables, Two-Stage Least Squares (2SLS), Heckman two-stage regression, and the propensity score matching (PSM). Moreover, the cultural distance between the host countries where CEO worked or received education and China inhibits corporate financialization, especially, Individualism vs Collectivism (IC) distance makes the most significant contribution. Furthermore, overseas CEOs primarily inhibit corporate financialization by improving ESG investment UUM Press 2024-12-25 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/32064/1/JTOM%2019%2002%202024%2020-40.pdf Mohd Nor, Normaziah and Zheng, Minyu and Mohd Ashhari, Zariyawati (2024) CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China. Journal of Technology and Operations Management (JTOM), 19 (2). pp. 20-40. ISSN 2590-4175 https://e-journal.uum.edu.my/index.php/jtom
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Mohd Nor, Normaziah
Zheng, Minyu
Mohd Ashhari, Zariyawati
CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China
description Recently, Chief Executive Officers (CEOs) with overseas experiences show the “star effect”, according to upper echelons theory, CEOs’ overseas experiences might relate to corporate financialization, but there is little evidence of whether and how overseas CEOs affect it. Given the increasing trend of hiring overseas CEO in China, the study fills in the gap in the literature by examining the effect of CEOs with overseas experiences on corporate financialization. In sum, the study employs a two-way fixed effect model and SYS-GMM model to investigate the relationship between CEOs with overseas experiences and corporate financialization. Our findings still hold after the endogeneity disposal with a two-way fixed effect regression by lagging variables, Two-Stage Least Squares (2SLS), Heckman two-stage regression, and the propensity score matching (PSM). Moreover, the cultural distance between the host countries where CEO worked or received education and China inhibits corporate financialization, especially, Individualism vs Collectivism (IC) distance makes the most significant contribution. Furthermore, overseas CEOs primarily inhibit corporate financialization by improving ESG investment
format Article
author Mohd Nor, Normaziah
Zheng, Minyu
Mohd Ashhari, Zariyawati
author_facet Mohd Nor, Normaziah
Zheng, Minyu
Mohd Ashhari, Zariyawati
author_sort Mohd Nor, Normaziah
title CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China
title_short CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China
title_full CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China
title_fullStr CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China
title_full_unstemmed CEO Overseas Experience, Cultural Distance and Corporate Financialization: the Mediating Effect of ESG Investment in China
title_sort ceo overseas experience, cultural distance and corporate financialization: the mediating effect of esg investment in china
publisher UUM Press
publishDate 2024
url https://repo.uum.edu.my/id/eprint/32064/1/JTOM%2019%2002%202024%2020-40.pdf
https://repo.uum.edu.my/id/eprint/32064/
https://e-journal.uum.edu.my/index.php/jtom
_version_ 1825164508456288256
score 13.244413

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