CEO foreign experience and firm performance: does CEO tenure matter?

Abstract

The study examines the impact of CEO foreign experience on firm performance and the effect of CEO tenure on this relation in the Vietnamese market. Using a unique, hand-collected dataset of non-financial firms listed on the Ho Chi Minh stock exchange (HOSE) over the period from 2013 to 2021, we find that firms led by CEOs with overseas experience tend to have higher performance as compared to their counterparts. In addition, CEO tenure strengthens the positive relationship between managerial foreign experience and firm performance. The findings indicate the importance of foreign experienced CEOs in fostering firm performance, especially in emerging markets like Vietnam.

Keywords

• ceo foreign experience
• firm performance
• vietnam