Does Overseas Experience of CEOs Determine the Listing Location of Chinese Entrepreneurial Firms?

37 Pages Posted: 14 Dec 2016

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University; Birmingham Business School; European Corporate Governance Institute (ECGI)

Tinghua Duan

IESEG School of Management

Wenxuan Hou

University of Edinburgh - Business School

Bill Rees

University of Edinburgh - Accounting and Finance

Date Written: December 13, 2016

Abstract

This paper examines listing location as a managerial decision. Using a sample of IPOs of Chinese entrepreneurial firms in mainland China, the US and HK, we show that Chinese entrepreneurial firms with returnee CEOs, especially those operating in high-tech industries, are likely to undertake foreign IPOs. However, the credibility crisis for Chinese firms impedes the decision to undertake foreign IPOs of entrepreneurial firms with returnee CEOs. The results are consistent on returnee CFOs and other senior executives. Overall, our findings emphasize the important role of returnee CEOs in the internationalization of Chinese entrepreneurial firms.

Keywords: CEO, Returnee, Foreign IPOs, Entrepreneurial Firms

JEL Classification: L21, F23, G34, L26, M12

Suggested Citation

Cumming, Douglas J. and Duan, Tinghua and Hou, Wenxuan and Rees, William, Does Overseas Experience of CEOs Determine the Listing Location of Chinese Entrepreneurial Firms? (December 13, 2016). Available at SSRN: https://ssrn.com/abstract=2884856 or http://dx.doi.org/10.2139/ssrn.2884856

Douglas J. Cumming

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://sites.google.com/view/douglascumming/bio?authuser=0

Birmingham Business School ( email )

Edgbaston Park Road
Birmingham, B15 2TY
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://https://ecgi.global/users/douglas-cumming

Tinghua Duan (Contact Author)

IESEG School of Management ( email )

Socle de la Grande Arche
1 Parvis de la Defense
Puteaux, Paris 92800
France

Wenxuan Hou

University of Edinburgh - Business School ( email )

29 Buccleuch Place
EDINBURGH, Scotland EH89JS
United Kingdom

William Rees

University of Edinburgh - Accounting and Finance ( email )

29 Buccleuch Place
Edinburgh, EH8 9JS
United Kingdom
+44 131 651 5244 (Phone)

HOME PAGE: http://www.business-school.ed.ac.uk

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