Do Returnee Executives Enhance Firm Innovation?

Since the reform and opening up,China's economic development has been changing with each passing day,but it relies mainly on the "Made in China" advantage brought by cheap labor.However,with the disappearance of the demographic dividend,it is imperative to cultivate the advantage of "China's wisdom".To this end,the 18 th National Congress of the Communist Party of China and the 19 th National Congress of the Communist Party of China have successively proposed to implement the "innovation-driven development strategy" and "to build an innovative country in an all-round way",and provide a series of policy support for scientific research and innovation work,hoping to stimulate the innovation enthusiasm of Chinese enterprises.In addition,since 1980,globalization has gradually become a new development trend,and overseas talents have returned to their homeland to build their motherland.Especially since the 18 th National Congress,China has ushered in a new wave of returnees,and 23.13 million people have returned to China,and the corporate executive team has emerged with new features.In this context,it is of great practical significance to focus on and study the impact of human capital on firm Innovation.It has been found that in addition to macro-systems,market factors and corporate characteristics will affect firm Innovation,managerial characteristics will also have an impact on firm Innovation to a certain extent.But at present,scholars' research on the characteristics of managers is limited to the characteristics of education,academic and political background,and less on the overseas experience of executives.Considering that returnee executives often have an international perspective,understand cutting-edge technology,and master foreign advanced management experience,with a "star effect",perhaps by reducing the degree of information asymmetry between enterprises and external investors,to ease the face of enterprise R & D innovation process Financing constraints;and they have more incentives to improve corporate performance,and then improve corporate governance,ease agency problems,reduce corporate agency costs,and ultimately promote firm Innovation.In view of this,this paper proposes a assumption that compared with local executives,returnees can better promote firm Innovation.Based on the research hypothesis,this paper selects the 2008-2016 data of all A-share listed companies in China's Shanghai and Shenzhen stock exchanges as a research sample,measures enterprise innovation from the perspective of innovation output,and builds areturnee executive agent according to whether the executives have overseas experience.We empirically test the specific impact of executives' overseas experience on firm Innovation.After empirical analysis,we draw the following conclusions: Firstly,returnee executives can significantly promote enterprise innovation.This relationship is still established after a series of robustness tests and endogenous tests.Secondly,returnees can pass Mitigating corporate financing constraints and reducing agency costs to promote enterprise innovation;Thirdly,the role of returnees in promoting firm Innovation is more pronounced in areas with poor institutional environment and low external audit quality,while analysts and institutional investors have a positive adjustment effect on the promotion relationship between the two.In general,this paper broadens the research on the influencing factors of firm Innovation and the economic consequences of returnees.It has reference significance for accelerating the implementation of "innovation-driven development strategy",building innovative countries and enterprises to formulate talent introduction strategies.Finally,based on the research conclusions and the specific reality of our country,we propose that the government should improve and strengthen the training system for overseas students,enterprises should actively formulate relevant policies and recommendations to introducing returnees,and strengthen the effect of market monitors such as analysts and institutional investors.