Overseas background of executive and enterprises’ outward foreign direct investment: multi-level moderating model and heterogeneity research

With the increasing uncertainty in trade, investment, and geopolitical aspects, considerable attention is paid to whether and how executives’ overseas backgrounds affect enterprises’ outward foreign direct investment (OFDI). This article is based on the data of Chinese listed companies from 2000 to 2020, and empirical analysis reveals that executive overseas background positively impacts enterprises’ OFDI. Analysis of the moderating effect shows that the executive pay gap and corporate cultural diversity play an inverted U-shape moderating role in the influence of executive overseas background on OFDI. The industrial agglomeration level positively moderates the influence of executive overseas background on OFDI. Mechanism analysis shows that the overseas background of executives can play a role through innovation-driven, digital transformation and utilizing the location advantage of the host country. The results also show that the effect of executives’ overseas backgrounds is significantly affected by the heterogeneity of OFDI and the heterogeneity of executives’ overseas backgrounds. The conclusion of this study substantiates the pivotal role of executives’ overseas backgrounds in propelling the OFDI activities of Chinese enterprises. It also provides empirical support for the policy of talent introduction and opening-up.