Research On The Relationship Between Non Local CEOs And Enterprise Risk Taking Level

Risk taking reflects the choice of projects with uncertain expected returns and cash flows in the business decision-making process.Moderately increasing the level of risk taking has positive implications for both micro-enterprise operations and macroeconomic operations.With China’s economic and social development and the increasing improvement of public infrastructure,cross-regional population mobility has become the norm,and the proportion of non local population has increased significantly.The non local population has played a pivotal role in the economic and social development of a region.How to promote the level of corporate risk taking through the leading role of non local highly qualified talents has become a concern in theory and practice.China is a relationship-based society,humanity and relationships can influence the decision-making process and outcomes.Local CEOs are often motivated by local relationships in their management decisions,while non local CEOs are less subject to this "human dilemma" and are more able to objectively and fairly change corporate irrationalities,improve corporate oversight and governance,and reduce the local social burden.Non local CEOs have a stronger pioneering spirit and experience in dealing with uncertain environments,which enhances the level of corporate risk taking.The "learning complementarity" between the two regional cultures can lead to new knowledge and concepts,stronger integration and risk perception,which can positively contribute to corporate risk taking.Based on previous studies,this paper takes non local CEOs whose place of work is not the same as their place of origin as the entry point to explore their influence on the risk taking level of enterprises,and conducts heterogeneity analysis by combining the nature of property rights,regional economic development level,regional innovation atmosphere,and regional religious atmosphere,based on which the mechanism of action and economic consequences of the influence of non local CEOs on the risk taking level of enterprises are explored,so as to provide some reference for local government talent policy formulation and enterprise talent selection and training mode.Based on the upper echelons theory,branding theory,place attachement theory and the "cultural learning complementarity" hypothesis,this paper conducts an empirical test on a sample of listed companies in Shanghai and Shenzhen from 2008 to 2021.The findings of this paper indicate that(1)non local CEOs can promote the level of corporate risk taking;(2)the promotion effect of non local CEOs on the level of corporate risk taking is more significant in state-owned enterprises,economically developed regions,regions with a strong innovation atmosphere,and regions with a weak religious atmosphere;(3)non local CEOs can improve corporate risk taking by improving the efficiency of corporate resource utilization and reducing other external pressures level of risk taking(4)the enhancement of corporate risk taking by non local CEOs will enhance corporate value.The research in this paper has important theoretical value and practical significance for the talent introduction strategy of local governments and the talent selection and training mode of enterprises.Local governments should be fully aware of the importance of non local high-quality talents and take strong measures to introduce non local high-quality talents to promote high-quality macroeconomic and social development.Enterprises should insist on recruiting talents when selecting talents,build a composite executive team,improve the level of corporate risk taking and promote long-term development.