## Corporate Decision-Making and Overseas Residency Rights### Primary Topic:**Overseas Residency Rights and Corporate Decision-Making**### Subtopics:#### Section 1: Introduction- The impact of obtaining overseas residency by beneficial owners on firm's temporal decision-making- Intertemporal investment behaviors such as R&D and donations- Government policymaking relevance, particularly in developing countries#### Section 2: Literature**Subsection 2.1: Managerial Heterogeneity and Decision Incentives**- Grossman and Hart's principal-agent theory- Nationality and cultural differences**Subsection 2.2: Right of Abode and Investment Behavior of Firms**- Cross-cultural influences on investment decisions- Short-term and long-term implications of overseas residency on investment**Subsection 2.3: Foreign Residence Rights and R&D Incentive Motivation**- Importance of R&D for long-term growth- Changing motivations for R&D after obtaining residency rights**Subsection 2.4: Foreign Resident Status and Public Welfare Donation**- Micro-level motives for public welfare donations- Non-monetized private benefits of executives**Subsection 2.5: Literature Review**- Shortcomings in existing literature- Benefits of using propensity score matching (PSM) over traditional linear regression methods#### Section 3: Model and Hypothesis- Development of utility functions for actual controllers and the impact of overseas residency rights on them- Elasticity of R&D and donation, considering discount rate, time cost, and psychological cost- Hypothesis 1: Negative impact of overseas residency rights on R&D investment- Hypothesis 2: Negative impact of overseas residency rights on firms' public welfare donations#### Section 4: Methodology**Subsection 4.1: Data**- Chinese listed firms' financial data from 2003 to 2020- Annual reports and other sources for residency rights status**Subsection 4.2: Variables**- **Outcome variables**: R&D investment, public welfare donation- **Treatment variable**: Foreign residency rights- **Control variables**: Minority shareholders' equity, earnings per share, quick ratio, net return on assets, total assets, total liabilities, main business income, sales income, total revenue, ChiNext, total share capital, circulating share capital, first shareholders, number of board members, independent directors, total assets, total debt, number of employees, fixed assets, sales tax and surcharges, income tax rate, founder's political identity**Subsection 4.3: Model Settings**- Regression models to test hypotheses**Subsection 4.4: Descriptive Statistics**- Summary of key variables**Subsection 4.5: Methodology**- Use of propensity score matching (PSM) for more accurate estimation#### Section 5: Results Discussions**Subsection 5.1: The Basic Regression**- Negative correlation between overseas residency rights and R&D investment and public welfare donations**Subsection 5.2: Foreign Residency Rights and R&D**- Reduced R&D investment for enterprises whose actual controllers have overseas residency rights- Confirmation of Hypothesis 1**Subsection 5.3: Foreign Residency Rights and Public Welfare Donation**- Decreased public welfare donations for enterprises with overseas residency actual controllers- Partial confirmation of Hypothesis 2**Subsection 5.4: Robustness Tests**- Replacement of data samples and control variables- Hypotheses 1 and 2 hold after robustness tests#### Section 6: Conclusion and Policy Implications- Confirmation of negative impact of foreign residency rights on R&D and donations- Policy recommendations: - Redesign laws and regulations on foreign residency right - Establish "risk warning system" and "trigger strategy" - Strengthen internal supervision and control systems