IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v105y2025ics1057521925005198.html
   My bibliography  Save this article

Returnees and remuneration: The influence of international experience on compensation policies in chinese firms

Author

Listed:
  • Shu, Ao
  • Kuang, Xiasi
  • Zhou, Yue
  • Zhou, Ke
  • Yin, Xiaoling

Abstract

This study examines the impact of overseas returnees on the compensation policies of Chinese firms. Using a dataset of 25,616 observations from publicly listed Chinese companies between 2012 and 2020, the research reveals that returnees significantly raise monetary wages while reducing nonwage benefits. This shift can be attributed to the incentive-driven management practices and improved governance capabilities they derive from their international experience, as well as their ability to offer objective perspectives free from local biases. Most importantly, our findings highlight the critical role of cultural alignment, which is shaped by exposure to individualistic and performance-oriented cultures, in motivating returnees to implement the compensation strategies. Furthermore, this effect is particularly pronounced in competitive industries and firms with a higher proportion of skilled employees. Overall, our findings underline the broader implications of returnees' cross-cultural experiences, demonstrating how global talent enhance a firm's competitiveness.

Suggested Citation

  • Shu, Ao & Kuang, Xiasi & Zhou, Yue & Zhou, Ke & Yin, Xiaoling, 2025. "Returnees and remuneration: The influence of international experience on compensation policies in chinese firms," International Review of Financial Analysis, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:finana:v:105:y:2025:i:c:s1057521925005198
    DOI: 10.1016/j.irfa.2025.104432
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521925005198
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.104432?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:105:y:2025:i:c:s1057521925005198. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.