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Migrant Top Management Team and Corporate Innovation: Evidence from China

Tracks
Jade 2
Tuesday, July 2, 2024
11:00 AM - 11:25 AM

Presenter

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Ms Ying Liu
PhD Student
Massey University, Albany Campus

Migrant Top Management Team and Corporate Innovation: Evidence from China

Abstract

This study explores the association between top management teams (TMT) comprised of migrant managers (migrant TMT) and corporate innovation. Using hand-collected data for a sample of Chinese A-share listed firms spanning the period 2008-2020, we find a positive and significant association between a migrant TMT and corporate innovation including green innovation. Our results remain robust to a set of endogeneity tests, including entropy-balanced regression, and instrumental variable regression. We then show that real earnings management and risk-taking are the channels through which the positive relationship between migrant TMTs and corporate innovation manifests itself: migrant TMTs engage less in real earnings management and are more likely to take risks. Finally, we find that the positive relationship between migrant TMTs and corporate innovation is more pronounced in state-owned firms, and in firms with more managers migrating from the Central and Western regions of China to the Eastern regions. Our findings contribute to the literature by providing novel evidence on how a migrant TMT affects corporate decision-making.

Biography

Ying Liu is a PhD candidate at the School of Accountancy, Massey University, Albany Campus under the supervision of Professor Ahsan Habib and Dr Hedy Huang. Her research interests are in the areas of corporate governance and corporate finance.

Chair

Christiana Osei Bonsu
Lecturer
Australian Institute of Business


Discussant

Mark Wallis
Lecturer
The University Of Queensland

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