Non-local CEO and Corporate Strategic Difference

According to the place of employment, CEOs from different places of origin can be divided into non-local CEOs and local CEOs. Their different styles will affect corporate strategies. Strategic difference is one of the important features of corporate strategy. Shanghai-Shenzhen A-share listed companies from 2009—2019 were chosen as the sample for empirical inspection from the perspective of strategic difference. The results show that corporate strategic differences were higher when CEOs were non-local. Analysis of cross-sectional differences shows that this phenomenon was more obvious when the enterprise was not owned by state, CEOs had higher power, CEOs stayed in office, and the risk preference of the hometown of CEOs was lower. After replacing the variables and implementing the psm test for stable analysis, the results remained stable. Furthermore, CEO overconfidence had a partial mediation effect on CEOs’ choice of corporate strategy. Research conclusions help further understand the impact of CEOs’ personal characteristics on corporate strategy, and remind the differences between non-local CEOs and local CEOs in strategic choices. It also provides reference for future corporate strategic management and operation.