CEO characteristics, multinationality and downside risk: evidence from Chinese multinational corporations

IF 2.2 4区管理学 Q3 BUSINESS

Multinational Business Review Pub Date : 2022-10-05 DOI:10.1108/mbr-01-2022-0007

Chaojin Zhou

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引用次数: 2

Abstract

Purpose Real options theory posits that multinationality provides additional operating flexibility and helps firms reduce downside risk. This study aims to explore the effects of chief executive officer (CEO) characteristics on the downside risk implication of multinationality in Chinese multinational corporations (MNCs). Design/methodology/approach This study gathers a sample of Chinese MNCs from 2009 to 2020 and deploys a Tobit panel estimation model with fixed effects in the empirical analysis. Findings This study finds that multinationality has a significant negative effect on downside risk. The downside risk reduction effect of multinationality is stronger in firms led by older CEOs, women CEOs, CEOs with overseas experience or broader functional backgrounds or those with higher educational levels. Additionally, the above effects of CEO characteristics on the downside risk reduction effect of multinationality are more pronounced in firms with smaller top management team (TMT) sizes. Hence, the findings show that the multinational network constructed by Chinese MNCs could offer great operating flexibility, and CEO characteristics and the CEO–TMT interface play an important role in achieving real options flexibility from multinationality. Originality/value This study shows that multinationality could be an effective way for emerging market firms to reduce business risk. This study helps identify CEO characteristics that are associated with real option performance and emphasizes that CEO personal attitudes and abilities could influence the real options flexibility obtained from multinationality. This study also contributes to the understanding of micro foundations in international business by focusing on the role of CEO characteristics and the CEO–TMT interface in the downside risk implications of multinationality.

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CEO特征、多国性与下行风险:来自中国跨国公司的证据

目的实物期权理论认为，跨国公司提供了额外的运营灵活性，有助于企业降低下行风险。本研究旨在探讨首席执行官（CEO）特征对中国跨国公司跨国性下行风险影响的影响。设计/方法/方法本研究收集了2009年至2020年的中国跨国公司样本，并在实证分析中采用了具有固定效应的托比特面板估计模型。研究发现，跨国公司对下行风险有显著的负面影响。跨国公司的下行风险降低效应在由年长的CEO、女性CEO、具有海外经验或更广泛职能背景的CEO或教育水平较高的CEO领导的公司中更强。此外，CEO特征对跨国公司下行风险降低效应的上述影响在高管团队规模较小的公司中更为明显。因此，研究结果表明，中国跨国公司构建的跨国网络可以提供巨大的运营灵活性，CEO特征和CEO-TMT接口在实现跨国公司实物期权灵活性方面发挥着重要作用。原创性/价值这项研究表明，跨国公司可能是新兴市场企业降低商业风险的有效途径。本研究有助于确定与实物期权绩效相关的CEO特征，并强调CEO的个人态度和能力可能影响从跨国公司获得的实物期权灵活性。本研究还通过关注CEO特征和CEO-TMT界面在跨国公司下行风险影响中的作用，有助于理解国际业务中的微观基础。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Multinational Business Review BUSINESS-

CiteScore

5.40

自引率

14.80%

发文量

期刊介绍： Multinational Business Review publishes high quality and innovative peer-review research on the strategy, organization and performance of multinational enterprise (MNE), international business history, geography of international business, and the impact of international business on economic growth and development. The journal encourages papers that are cross-disciplinary in nature, and that address new and important issues in international business. Multinational Business Review also promotes research on under-represented regions such as Africa, Central and Eastern Europe, Latin America, and South East Asia and their MNEs, as well as under-studied topics such as the role of trade, investment and other public policies. Specific topics of interest include innovation and entrepreneurship in an international context; corporate governance and ownership; social, environmental and political risk; the role of multilateral institutions; and the nature of emerging market multinationals. The title seeks strong conceptual studies, contributing to the advancement of theories and frameworks, and sound empirical work, whether qualitative or quantitative, suggesting managerial, economic or government policy recommendations. The journal encourages replication studies that contribute to our understanding of the reliability and validity of current knowledge. Finally, Multinational Business Review welcomes proposals for perspectives pieces that offer critical and challenging viewpoints; surveys of the literature particularly those that use new and innovative bibliometric methods; and special issues on topics of relevance to Multinational Business Review.