The Impact of CEO’s Overseas Backgrounds on Firm Market Value: A Tobin’s Q Perspective
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The Impact of CEO’s Overseas Backgrounds on Firm Market Value: A Tobin’s Q Perspective

Qinhan Li 1, Yuxuan Liu 2, Yunxin Zhang 3, Yunfan Zeng 4*
1 University of Illinois at Urbana-Champaign
2 Hefei No.1High school
3 Minhang Crosspoint Academy
4 Sichuan University
*Corresponding author: Synthiazeng@outlook.com
Published on 26 November 2025
Volume Cover
AEMPS Vol.245
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-569-1
ISBN (Online): 978-1-80590-570-7
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Abstract

Grounded in upper echelons theory, this study examines the effect of CEOs’ overseas backgrounds on firm value, measured by Tobin’s Q. Using 33,995 CEO-year observations from Chinese A-share listed firms between 2008 and 2024, we find that overseas experience significantly enhances firm value. This effect is robust across the pre- and post-COVID-19 periods, and is particularly pronounced in smaller firms and among middle-aged CEOs. Further analyses indicate that firm size and CEO age moderate the relationship, while internationalization strategy, innovation capability, and investment efficiency serve as key mechanisms. The findings contribute to research on managerial human capital and provide practical implications for executive selection and globalization strategies.

Keywords:

overseas background, Tobin’s Q, upper echelons theory

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Li,Q.;Liu,Y.;Zhang,Y.;Zeng,Y. (2025). The Impact of CEO’s Overseas Backgrounds on Firm Market Value: A Tobin’s Q Perspective. Advances in Economics, Management and Political Sciences,245,45-55.

References

[1]. Aini, S. N., Harymawan, I., Nasih, M., & Kamarudin, K. A. (2024). CEO overseas experience and sustainability report disclosure: Evidence from Indonesia. Corporate Social-Responsibility and Environmental Management, 31(6), 5837–5849.

[2]. Sarto, F., Saggese, S., Ricci, F., & Corte, G. (2025). Sustainability Reporting Assurance in Italian Listed Companies: Understanding the Role of CEO Characteristics. Business Strategy and the Environment, 34(4), 4622–4641.

[3]. Wang, G., Holmes Jr, R. M., Oh, I.-S., & Zhu, W. (2016). Do CEOs Matter to Firm Strategic Actions and Firm Performance? A Meta-Analytic Investigation Based on Upper Echelons Theory. Personnel Psychology, 69(4), 775–862.

[4]. Cao, X., Wang, Z., Li, G., & Zheng, Y. (2022). The impact of chief executive officers’ (CEOs’) overseas experience on the corporate innovation performance of enterprises in China. Journal of Innovation & Knowledge, 7(4), Article 100268.

[5]. Gu, J. (2022). Do at home as Romans do? CEO overseas experience and financial misconduct risk of emerging market firms. Research in International Business and Finance, 60, Article 101624.

[6]. Liang, S., Niu, Y., Xin, F., & Jiang, L. (2024). CEO foreign experience and corporate financial investment. International Review of Economics & Finance, 93(1), 929–946.

[7]. Bin Haron, R., & Ahmad Baharul Ulum, Z. K. (2021). Non-linear relationship between foreign currency derivatives and firm value: Evidence on Sharī’ah compliant firms. Islamic Economic Studies (IES), 28(2), 156–173.

[8]. Huong, N. T., & Vu, H. P. (2023). CEO foreign experience and firm performance: Does CEO tenure matter? The University of Danang Journal of Science and Technology, 21(12.2).

[9]. Xiang, X, Chen, CR, Liu, Y, Mughal, A & Tao, Q (2023). 'Are directors with foreign experience better monitors? Evidence from investment efficiency', Review of Quantitative Finance and Accounting.

[10]. Mysaka, H., & Derun, I. (2021). Corporate Financial Performance and Tobin’s Q in Dividend and Growth Investing. VIZJA University.

[11]. Kim, B. (2019). The relationship between globalization and performance of venture firms in Korea: The moderating effect of CEO international experience (Doctoral dissertation). Seoul National University, College of Business Administration.

[12]. Chen, Y., Chen, C., & Lin, Y. (2023). Are directors with foreign experience better monitors? Evidence from China.Journal of Financial and Quantitative Analysis, 58(3), 1215-1254.

References

[1]. Aini, S. N., Harymawan, I., Nasih, M., & Kamarudin, K. A. (2024). CEO overseas experience and sustainability report disclosure: Evidence from Indonesia. Corporate Social-Responsibility and Environmental Management, 31(6), 5837–5849.

[2]. Sarto, F., Saggese, S., Ricci, F., & Corte, G. (2025). Sustainability Reporting Assurance in Italian Listed Companies: Understanding the Role of CEO Characteristics. Business Strategy and the Environment, 34(4), 4622–4641.

[3]. Wang, G., Holmes Jr, R. M., Oh, I.-S., & Zhu, W. (2016). Do CEOs Matter to Firm Strategic Actions and Firm Performance? A Meta-Analytic Investigation Based on Upper Echelons Theory. Personnel Psychology, 69(4), 775–862.

[4]. Cao, X., Wang, Z., Li, G., & Zheng, Y. (2022). The impact of chief executive officers’ (CEOs’) overseas experience on the corporate innovation performance of enterprises in China. Journal of Innovation & Knowledge, 7(4), Article 100268.

[5]. Gu, J. (2022). Do at home as Romans do? CEO overseas experience and financial misconduct risk of emerging market firms. Research in International Business and Finance, 60, Article 101624.

[6]. Liang, S., Niu, Y., Xin, F., & Jiang, L. (2024). CEO foreign experience and corporate financial investment. International Review of Economics & Finance, 93(1), 929–946.

[7]. Bin Haron, R., & Ahmad Baharul Ulum, Z. K. (2021). Non-linear relationship between foreign currency derivatives and firm value: Evidence on Sharī’ah compliant firms. Islamic Economic Studies (IES), 28(2), 156–173.

[8]. Huong, N. T., & Vu, H. P. (2023). CEO foreign experience and firm performance: Does CEO tenure matter? The University of Danang Journal of Science and Technology, 21(12.2).

[9]. Xiang, X, Chen, CR, Liu, Y, Mughal, A & Tao, Q (2023). 'Are directors with foreign experience better monitors? Evidence from investment efficiency', Review of Quantitative Finance and Accounting.

[10]. Mysaka, H., & Derun, I. (2021). Corporate Financial Performance and Tobin’s Q in Dividend and Growth Investing. VIZJA University.

[11]. Kim, B. (2019). The relationship between globalization and performance of venture firms in Korea: The moderating effect of CEO international experience (Doctoral dissertation). Seoul National University, College of Business Administration.

[12]. Chen, Y., Chen, C., & Lin, Y. (2023). Are directors with foreign experience better monitors? Evidence from China.Journal of Financial and Quantitative Analysis, 58(3), 1215-1254.

Cite this article

Li,Q.;Liu,Y.;Zhang,Y.;Zeng,Y. (2025). The Impact of CEO’s Overseas Backgrounds on Firm Market Value: A Tobin’s Q Perspective. Advances in Economics, Management and Political Sciences,245,45-55.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Data-Driven Decision Making in Business and Economics

ISBN: 978-1-80590-569-1(Print) / 978-1-80590-570-7(Online)
Editor: Lukášak Varti
Conference website: https://2025.icftba.org/Bratislava.html
Conference date: 12 December 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.245
ISSN: 2754-1169(Print) / 2754-1177(Online)

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