PUBLICATIONS & REPORTS

Contents Introduction

Using hand-collected data from Chinese public companies, we examine whether managerial foreign experience affects corporate outward foreign direct investment (OFDI) decision. Our result shows that there is a positive association between managerial foreign experience and OFDI. The finding is robust to alternative sampling method, foreign experience measures, and regression specification. We also use the instrumental variable approach, the propensity score matching procedure, and the Heckman two-stage selection model to mitigate potential endogeneity concerns. While both foreign work and study experience promote OFDI, the effect is significant only in non-state-owned entities and only when returnee managers hold senior positions. Lastly, we show that managerial foreign experience is associated with improved performance of outward investments.