CEO's Overseas Experience,Incentive And Firm Innovation

With the trend of economy downward pressure is increasing and demographic dividend is diminishing,factor inputs model is not sensitive to the changing of market.China is implementing an innovation-driven strategy.As the main participant of market economic activities,enterprise innovation plays a key role in economic development.How to promote innovation activities and enhance innovative capability has become an important subject in both theoretical and practical fields.With the background of economic globalization and the in-depth process of China's reform and opening-up policy,CEO with foreign experience plays a much more important role in corporations.Based on the background that the innovation investment and innovation output of listed companies in China is lagging behind,this thesis studies the relationship between CEO's overseas experience,incentive and firm innovation.The thesis firstly reviews the related literature of the factors of firm innovation,the economic consequences studies of executive's overseas experience and the relationship among incentive and firm innovation.According to innovation theory,upper echelons theory,behavioral consistency theory,incentive theory and tournament theory,the thesis puts forward the theoretical analysis framework of CEO's overseas experience,incentive and firm innovation.Afterwards,from the perspectives of normative and empirical,the thesis studies the impact of CEO's overseas experience on firm innovation,the impact of compensation incentive on the relationship between CEO's overseas experience and firm innovation in non-SOEs and the impact of political promotion on the relationship between CEO's overseas experience and firm innovation in SOEs by using multiple linear regressions and empirical tests.Research results show that CEO with foreign experience has advantages in psychological,intellectual and social capital,CEO's overseas experience has a significant positive impact on firm innovation,compensation incentive plays a positive function on the relationship between CEO's overseas experience and firm innovation in non-SOEs,political promotion plays a positive function on the relationship between CEO's overseas experience and firm innovation in SOEs.In the end,based on the above findings,the thesis proposes to optimize CEO's selection mechanism,improve the firm's incentive mechanism and perfect overseas talent introduction policies.The thesis extends the literature of the factors of firm innovation and economic consequences studies of executive's overseas experience.It also deepens the research of CEO's overseas experience and firm innovation.The results also provide evidences for promoting the ability of innovation,selecting appropriate CEO and optimizing the incentive mechanism.