Military executives and corporate outcomes: Evidence from China

Lin Lin, Nhut Hoang Nguyen, Martin Young and Liping Zou

Emerging Markets Review, 2021, vol. 49, issue C

Abstract: This study investigates the impact of executives' military experience on corporate outcomes in China. We find that firms with military executives take higher financial leverage and underperform their non-military counterparts, although they perform relatively better during periods of industry distress. Our results are robust when using propensity score matching and instrumental variable approaches. Interestingly, military executives in China commit relatively more corporate violations compared to those without military experience. This finding differs to the findings of Benmelech and Frydman (2015) for U.S. military CEOs, where there are clear differences in culture, education background, and ethical behaviours as compared with China.

Keywords: Executive; Military experience; Violation; Performance; Ethics (search for similar items in EconPapers)
JEL-codes: G31 G32 J24 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:49:y:2021:i:c:s1566014120302697

DOI: 10.1016/j.ememar.2020.100765

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