Top management team stability and outward foreign direct investment of Chinese firms
Abstract
Purpose
This study aims to investigate the effect of top management team (TMT) stability on outward foreign direct investment (OFDI) of Chinese firms and the moderating effects of state ownership and managerial ownership on this relationship.
Design/methodology/approach
An empirical analysis based on the ordinary least square regression model is conducted using Chinese A-share listed firms that engaged in OFDI from 2008 to 2021.
Findings
TMT stability has a positive effect on firms’ OFDI. Moreover, state ownership significantly strengthens the positive relationship between TMT stability and OFDI, while managerial ownership weakens this positive relationship.
Practical implications
The findings help firms to effectively retain TMT talents and promote the smooth internationalization of firms, thereby enhancing their long-term development capabilities and competitive advantages.
Originality/value
This study expands the investigation of the factors influencing OFDI at the micro level of the TMT, providing valuable decision-making insights for firms.
Keywords
Acknowledgements
Funding: The authors acknowledge the funding support by Fujian Provincial Social Science Foundation Project (No. FJ2024MGCA018).
Data availability statement: The data sets that support the findings of the current study are available from the corresponding author on reasonable request.
Citation
Zhan, Y., Liao, J. and Zhao, X. (2024), "Top management team stability and outward foreign direct investment of Chinese firms", Multinational Business Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MBR-08-2023-0125
Publisher
:Emerald Publishing Limited
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