The Characteristics Of CEO And International Diversification Of Chinese Listed Companies

As more and more Chinese enterprises go abroad,the phenomenon of international diversification across countries and regions is becoming more and more commonplace.How to carry out international diversification has become an important issue for Chinese enterprises.Under the current environment of international financial integration,investors need to examine cross-border investment activities with a large scale and avoid market risks as much as possible.They should take the initiative to optimize asset allocation in various countries and regions in order to reduce the risk of encountering more problems in individual countries or regions Economic or political risks.This cross-country and regional investment behavior is called international diversification.In general,diversified businesses are larger and more complex in multiple markets.Compared with specialized enterprises,diversified enterprises are facing more problems of information asymmetry due to the diversification of diversified enterprises.Such supervision of diversified business managers is more difficult,resulting in greater agency costs for diversified businesses than for specialized businesses.Now that economic globalization is intensifying,international diversification has become the direction for the development of many enterprises in our country.Should the enterprises diversify internationally? Can international diversification improve business performance? What factors affect the performance of international diversified enterprises? Many enterprises in our country are facing several real problems.International diversification strategies can provide enterprises with larger and more diverse markets with different demand characteristics,so that international diversification potentially leads to higher innovation returns for the enterprise,thereby reducing the risk of R & D investment.Although emerging market enterprises can also use their own cost advantages to diversify internationally,due to their poor key assets,low management level,and low reputation,they often suffer from their own proprietary weaknesses in their international diversification.Resulting in a decline in performance.The more countries enter a business,the more business must be able to co-ordinate to meet different market challenges.According to the disadvantage of outsiders,the increase of international diversification will lead enterprises to adapt to the culture,system and social environment of different countries in international business.Even if the experience in the markets of other countries can be replicated,access to the new host market will require greater corporate management and coordination.As for Chinese enterprises,the time for transnational operation of enterprises is not long,and the lack of multi-nation operation capability will cause enterprises to face more problems.With the acceleration of world economic integration and the further aggravation of competition in the international market,the business environment faced by enterprises has undergone tremendous changes and has been changing at a faster and faster pace.Under such circumstances,more and more enterprises are beginning to pay attention to the important role that management plays in the implementation of corporate strategy.And compared with the specialized enterprises,an obvious characteristic of the international diversified enterprises lies in their complexity.First of all,when enterprises run beyond the original industries and the domestic market,they will not only face the diversity of customers,competitors,rules and policies,but also face the diversity of culture,system and business environment.The original organizational system,organizational culture,management methods and so on can not meet the needs of this diversity,which brings some challenges to managers.In addition,because of the complexity of the international diversified enterprise management,which increases the information processing requirements of the top managers,the enterprises must develop the information processing mechanism that can effectively collect and process relevant information in response to the complexity of international diversification.This complexity and handling issues affect top-manager compensation incentives in two ways.First,the complexity of international diversified operations and the accompanying information processing issues exacerbate the information asymmetry between owners and managers,making it difficult for owners to acquire the expertise and capabilities and supervise managers.In this case,the owner has to rely more on incentives.Second,the complexity of managing an international diversified business also requires top management to have higher management capabilities.Therefore,on the one hand,based on the literature review of international diversification theory,this paper discusses the impact of international diversification on enterprises brought about cost,income and international diversification to firm performance.Whether the enterprise should have international diversification or international diversification is good or bad depends on the specific effectiveness of the specific characteristics of enterprises and industries.All enterprises should weigh the benefits and costs of international diversification while enterprises can take certain measures such as increasing Information investment,improve management practices will be the level of diversification of products and other means,to enhance the benefits of international diversification and reduce the cost of international diversification.On the other hand,based on the theoretical perspectives of behavioral finance and traditional finance,this paper uses the listed companies with overseas revenues in the operating income disclosed in this paper from 2008 to 2015 as the research sample and rejects them accordingly.From the perspective of the executives of listed companies,based on the review of the relevant literature and the experiences of some countries in international diversified development,this study examines the top management's gender,academic qualifications and part-time characteristics of China's listing The impact of international diversification of the company,and on this basis put forward countermeasures and suggestions that are suitable for the international diversification of Chinese enterprises.