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Executives’ overseas backgrounds, equity incentives, and corporate risk-taking

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  • Guo, Zining
  • Li, Xingzhou

Abstract

Corporate risk-taking is crucial for seizing market opportunities and promoting development. Using panel data from listed companies between 2010 and 2022, this study investigates the impact of executives' overseas backgrounds on corporate risk-taking. The results reveal that executives' overseas backgrounds effectively promote corporate risk-taking. Specifically, higher equity incentives amplify the positive effect of executives' overseas backgrounds on corporate risk-taking, while corporate performance serves as a mediating channel through which executives’ overseas backgrounds positively influence corporate risk-taking. The findings provide important practical implications for human resource management and risk management strategy formulation.

Suggested Citation

  • Guo, Zining & Li, Xingzhou, 2025. "Executives’ overseas backgrounds, equity incentives, and corporate risk-taking," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025002953
    DOI: 10.1016/j.iref.2025.104132
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    References listed on IDEAS

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    Cited by:

    1. Pan, Haiyue & Lei, Xue & Lin, Ouwen, 2025. "Internationalization labels of executives and corporate innovation—Form over substance?," International Review of Financial Analysis, Elsevier, vol. 107(C).

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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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