Returnees and remuneration: The influence of international experience on compensation policies in chinese firms

Ao Shu, Xiasi Kuang, Yue Zhou, Ke Zhou and Xiaoling Yin

International Review of Financial Analysis, 2025, vol. 105, issue C

Abstract: This study examines the impact of overseas returnees on the compensation policies of Chinese firms. Using a dataset of 25,616 observations from publicly listed Chinese companies between 2012 and 2020, the research reveals that returnees significantly raise monetary wages while reducing nonwage benefits. This shift can be attributed to the incentive-driven management practices and improved governance capabilities they derive from their international experience, as well as their ability to offer objective perspectives free from local biases. Most importantly, our findings highlight the critical role of cultural alignment, which is shaped by exposure to individualistic and performance-oriented cultures, in motivating returnees to implement the compensation strategies. Furthermore, this effect is particularly pronounced in competitive industries and firms with a higher proportion of skilled employees. Overall, our findings underline the broader implications of returnees' cross-cultural experiences, demonstrating how global talent enhance a firm's competitiveness.

Keywords: Returnee; Compensation policy; Culture (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521925005198
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:105:y:2025:i:c:s1057521925005198

DOI: 10.1016/j.irfa.2025.104432

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().