Do Returnee Executives Value Corporate Philanthropy? Evidence from China.

Area of Science:

• Business Administration
• Strategic Management
• Corporate Social Responsibility

Background:

• Limited research exists on the impact of returnee executives on nonmarket strategies.
• Corporate philanthropy is a key nonmarket strategy, particularly in emerging economies like China.
• Upper echelons theory provides a framework for understanding executive influence on firm behavior.

Purpose of the Study:

• To investigate the relationship between returnee executives and corporate philanthropy in Chinese listed companies.
• To explore how factors like executive ownership, corporate prominence, and political connections moderate this relationship.
• To contribute to strategic leadership, upper echelons theory, and corporate philanthropy literature.

Main Methods:

• Empirical analysis of data from publicly listed Chinese companies between 2010 and 2017.
• Quantitative research methods to assess the correlation between returnee executive proportion and corporate philanthropy.
• Statistical modeling to examine the moderating effects of executive ownership, corporate prominence, and political connections.

Main Results:

• A significant negative relationship was found between the proportion of returnee executives and corporate philanthropy.
• Executive ownership strengthens the negative relationship.
• Corporate prominence and political connections weaken the negative relationship.

Conclusions:

• Returnee executives may reduce corporate philanthropy in Chinese firms.
• Firm characteristics and external linkages play a crucial role in moderating this effect.
• Findings offer insights into strategic leadership and nonmarket strategy in emerging markets.