Executive Overseas Background and Direct Investment in Tax Havens
In recent years,the phenomenon of a large number of Chinese companies making direct investment in tax havens has attracted much attention,but there is little literature exploring the influencing factors behind this phenomenon.This paper is based on the reality of the continuous growth of overseas returnee talents in China,and uses lis-ted companies on Shanghai and Shenzhen A-share Stock Market as research samples to empirically test the impacts and mechanisms of executives'overseas backgrounds on direct investment behaviors in tax havens.The results show that listed companies with overseas backgrounds executives are more likely to make direct investments in tax havens;compared to companies with overseas backgrounds executives holding ordinary positions,companies with overseas backgrounds execu-tives holding key positions(Chairman or CEO)are more likely to make direct investment in tax havens;compared to o-verseas study experiences,executives'overseas work experiences are more likely to promote companies to make direct in-vestment in tax havens.Mechanism testing shows that executives with overseas backgrounds have higher level of overconfi-dence and stronger personal abilities,which makes companies more willing to engage in direct investment behaviors in tax havens which are relatively aggressive.Further research results show that having executives with overseas backgrounds does not increase the level of tax avoidance in a company,but it helps to enhance the level of international operation and corpo-rate value.The research in this paper enriches the relevant literature on the influencing factors of direct investment in tax havens in theory.It also provides useful references for further understanding the role of returnee talents and improving in-vestment regulation in tax havens in practice.
overseas backgrounds of executivesdirect investment in tax havensinternational managementcorpo-ration value
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