Research on the Impact of Executives' Overseas Background on the Enhancement of Corporate ESG Capability

Based on the top echelon theory and branding theory, This study explores the impact of executives' international experience on enhancing corporate ESG (Environmental, Social, and Governance) capabilities. Using empirical data from A-share listed companies in Shanghai and Shenzhen between 2018 and 2023, we examine how executives' overseas backgrounds contribute to improved ESG performance. The analysis seeks to highlight the role of global experience in advancing corporate sustainability and governance practices.It is found that executives' international experience is positively associated with higher corporate ESG scores.Specifically, executives with overseas backgrounds are able to introduce diversified perspectives and advanced management concepts, thus improving corporate performance in areas such as environmental sustainability, social responsibility, and governance.In addition, the study suggests that firms that take executives' international experience into account in their decision-making process are able to optimize resource allocation and respond effectively to stakeholders' needs. These findings offer both theoretical insights and practical recommendations for businesses in the selection and development of managerial talent, and emphasise the importance of executives' international background in promoting sustainable development and social responsibility.

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Publication Details

Journal
CREATIVE ECONOMY
Published
2025-01-01
DOI
https://doi.org/10.47297/wspcewsp2516-251902.20250901
Primary Topic
Global Political and Economic Relations
Type
article
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article

Research on the Impact of Executives' Overseas Background on the Enhancement of Corporate ESG Capability

Xiaoyu Min
CREATIVE ECONOMY
Global Political and Economic Relations
article

Research on the Impact of Executives' Overseas Background on the Enhancement of Corporate ESG Capability

Xiaoyu Min
article en

Abstract

Based on the top echelon theory and branding theory, This study explores the impact of executives' international experience on enhancing corporate ESG (Environmental, Social, and Governance) capabilities. Using empirical data from A-share listed companies in Shanghai and Shenzhen between 2018 and 2023, we examine how executives' overseas backgrounds contribute to improved ESG performance. The analysis seeks to highlight the role of global experience in advancing corporate sustainability and governance practices.It is found that executives' international experience is positively associated with higher corporate ESG scores.Specifically, executives with overseas backgrounds are able to introduce diversified perspectives and advanced management concepts, thus improving corporate performance in areas such as environmental sustainability, social responsibility, and governance.In addition, the study suggests that firms that take executives' international experience into account in their decision-making process are able to optimize resource allocation and respond effectively to stakeholders' needs. These findings offer both theoretical insights and practical recommendations for businesses in the selection and development of managerial talent, and emphasise the importance of executives' international background in promoting sustainable development and social responsibility.

CREATIVE ECONOMYVol. 9(1)
Jiangxi University of Finance and Economics (CN), Zhejiang University of Finance and Economics (CN)
Industry, innovation and infrastructure
Openalex Percentile: Top 93%
Global Political and Economic Relations
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Research on the Impact of Executives' Overseas Background on the Enhancement of Corporate ESG Capability — Xiaoyu Min · CREATIVE ECONOMY (2025) | TGRS Research Map | TGRS