CEO tenure and ownership mode choice of Chinese firms: The moderating roles of managerial discretion

• This study uses upper echelon theory to examine the impact of CEO tenure on ownership mode of Chinese firms and how some organizational factors moderate this relationship.
• We also intend to provide a more convincing explanation why full control mode is more risky.
• We find CEO tenure has a positive relationship with the choice of full control mode, while CEO duality can reinforce this relationship.

Based on upper echelon theory, this study has explored how CEO tenure affects ownership mode choice of Chinese firms investing abroad, and how some organizational factors, such as firm size, firm age and CEO duality, moderate this relationship. Using secondary data, this study finds CEO tenure has a positive relationship with the choice of full control mode, CEO duality can reinforce this relationship, but firm size and firm age have no significant moderating effect.