Does Military Experience of Managers Affect Corporate Governance?——Evidence from China's Listed Companies

Abstract

Abstract:

Military experience affects managerial behaviors and management styles, and is valuable for corporate governance. This paper uses the data samples of listed companies from 2004 to 2014 to empirically analyze the influence of military experience of managers on corporate governance, in which corporate governance is proxied by audit opinions and earning management. The results suggest that pri-vate companies in which the manager has military experience would involve less earning management and be less likely to receive modi-fied audit opinions. The institutional environment affects the relationship between military experience and corporate governance of private companies. To be specific, the weaker the government intervention is, the more significant role the military experience will play in impro-ving corporate governance. Moreover, the role of military experience can be substituted by MBA background, while the effects of military experience are more stable; The effects of military experience on corporate governance is more critical for private companies in regulated industry. The conclusion could provide some insights into the importance of military experience for corporate governance and contribute to the literature regarding the effects of managerial heterogeneity on corporate policies.

Key words: military experience, corporate governance, government intervention

Wang Yuanfang, Xu Yekun. Does Military Experience of Managers Affect Corporate Governance?——Evidence from China's Listed Companies[J]. , 2020, 32(1): 153-165.

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