Overseas-returned executives and their roles in firm performance: evidence from China

This paper examines the roles of overseas-returned executives in optimizing the business performance of Chinese companies. Using the data from listed companies in China's manufacturing industry, we find that overseas-returned executives improve firm performance, especially in non-state-owned firms, large firms and firms located in eastern China. Further mechanism analysis reveals that overseas-returned executives influence firm performance mainly through the risk-taking mechanism. This paper contributes to the firm performance literature by stating the importance of overseas-returned executives.