Overseas Background of Executives and Corporate Innovation— Based on the Mediating Role of Financing Constraints and Internal Control

Firms can only adapt to new opportunities in the new era through continuous innovation, and talent is the engine that drives innovation activities. This paper selects data related to overseas executives and corporate innovation of A-share listed companies from 2005-2021 to empirically test the impact of executives' overseas background on corporate innovation. It is found that overseas executives significantly promote corporate innovation and act on corporate innovation mainly through two mediating effects of enhancing internal control and reducing financing constraints. The study further finds that the promotion of corporate innovation by executives' overseas backgrounds is more pronounced in non-state enterprises, and the promotion of corporate innovation is stronger among executives with overseas posting backgrounds and those with both overseas posting and study backgrounds. The findings of the study provide path suggestions for enterprises to implement innovation development, and also provide a theoretical basis for enterprises to select returnee talents.