Executive Education, Corporate Profitability, and the Sustainable Development Goals: Evidence from China’s Real Estate Industry

Yichen Wu; Luyue Li; Hongming Zhou; Lanxinzi  Wan

doi:10.62177/amit.v1i7.1109

Authors

Yichen Wu College of Business and Public Management, Wenzhou-Kean University
Luyue Li College of Business and Public Management, Wenzhou-Kean University
Hongming Zhou College of Business and Public Management, Wenzhou-Kean University
Lanxinzi Wan College of Business and Public Management, Wenzhou-Kean University

DOI:

https://doi.org/10.62177/amit.v1i7.1109

Keywords:

Sustainability, SDGs, Executive Education, Real Estate, Profitability, CEO, CFO, China

Abstract

This study investigates the interconnections among SDG 4 (Quality Education), SDG 8 (Decent Work and Economic Growth), and SDG 11 (Sustainable Cities and Communities) by examining the role of executive human capital in China’s listed real estate firms. Using panel data from over 200 firms between 2018 and 2022, the study employs multivariate econometric models to analyze how the educational backgrounds of CEOs and CFOs influence corporate profitability, measured by ROA, ROE, and ROIC. The findings indicate that CEOs holding at least a bachelor’s degree exhibit a weak positive association with asset-based profitability, while CFO education does not display a stable positive effect, possibly reflecting conservative financial strategies in a highly regulated industry. By contrast, asset turnover consistently emerges as a key determinant of firm performance. Overall, the results suggest that the economic impact of executive education is context-dependent and mediated by industry characteristics. The study provides micro-level evidence on how educational attainment translates into firm performance, contributing to the understanding of sustainable economic growth and urban development within the SDG framework.

Downloads

Download data is not yet available.

References

Aboramadan, M. (2021). Top management teams characteristics and firms performance: literature review and avenues for future research. International Journal of Organizational Analysis, 29(3), 603–628.

Al-Sarraf, J., Al-Swidi, A. K., & Al-Hakimi, M. A. (2025). Board diversity matters: assessing ESG performance through the lens of firm size. Corporate Governance. https://doi.org/10.1108/cg-11-2023-0495

Altuwaijri, B. M., & Kalyanaraman, L. (2020). CEO education-performance relationship: Evidence from Saudi Arabia. The Journal of Asian Finance, Economics and Business, 7(8), 259–268.

Boadi, I., & Osarfo, D. (2019). Diversity and return: the impact of diversity of board members’ education on performance. Corporate Governance: The International Journal of Business in Society, 19(4), 824–842.

Cahyadi, C., & Abusalim, B. (2011). The role of education and experience in CFO career and compensation. Journal of Accounting and Finance, 11(3), 26–35.

Chi, G., & Gooda, A. R. (2024). Internal control, debt risk, CEO education and earnings management evidence from China. Journal of Financial Reporting and Accounting, 22(1), 52–78.

Christensen, J. F. (2006). Wither core competency for the large corporation in an open innovation world. In Open innovation: Researching a new paradigm (pp. 35–61).

Colombelli, A. (2015). Top management team characteristics and firm growth: Evidence from a sample of listed companies. International Journal of Entrepreneurial Behavior & Research, 21(1), 107–127.

Cumming, D., & Leung, T. Y. (2021). Board diversity and corporate innovation: Regional demographics and industry context. Corporate Governance: An International Review, 29(3), 277–296. https://doi.org/10.1111/corg.12365

Daellenbach, U. S., McCarthy, A. M., & Schoenecker, T. S. (1999). Commitment to innovation: The impact of top management team characteristics. R&D Management, 29(3), 199–208.

Darmadi, S. (2013). Board members’ education and firm performance: evidence from a developing economy. International Journal of Commerce and Management, 23(2), 113–135. https://doi.org/10.1108/10569211311324911

Datta, S., Doan, T., Guha, A., Iskandar-Datta, M., & Kwon, M.-J. (2022). CFO credentials, stock market signaling, and firm performance. International Journal of Managerial Finance. https://doi.org/10.1108/ijmf-11-2021-0571

Duong, L., Evans, J., & Truong, T. P. (2020). Getting CFO on board – its impact on firm performance and earnings quality. Accounting Research Journal, 33(2), 435–454. https://doi.org/10.1108/arj-10-2018-0185

Fung, H. G., Huang, A. G., Liu, Q. W., & Shen, M. X. (2006). The development of the real estate industry in China. Chinese Economy, 39(1), 84–102.

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.

Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica: Journal of the econometric society, 1029–1054.

Harymawan, I., Minanurohman, A., Nasih, M., Shafie, R., & Ismail, I. (2023). Chief financial officer’s educational background from reputable universities and financial reporting quality. Journal of Accounting & Organizational Change, 19(4), 566–587.

Hausman, J. A., & Taylor, W. E. (1981). Panel data and unobservable individual effects. Econometrica: Journal of the Econometric society, 1377–1398.

Herrmann, P., & Datta, D. K. (2005). Relationships between top management team characteristics and international diversification: An empirical investigation. British Journal of Management, 16(1), 69–78.

Ho, C. K. (2005). Corporate governance and corporate competitiveness: an international analysis. Corporate Governance: An International Review, 13(2), 211–253.

Jaggia, S., & Thosar, S. (2021). CEO management style: does educational background play a role? Managerial Finance, 47(10), 1465–1485.

Jalbert, T., Furumo, K., & Jalbert, M. (2010). Does educational background affect CEO compensation and firm performance? The Journal of Applied Business Research, 27(1), 15–40.

Khatib, S. F. A., Abdullah, D. F., Elamer, A. A., & Abueid, R. (2020). Nudging toward Diversity in the boardroom: a Systematic Literature Review of Board Diversity of Financial Institutions. Business Strategy and the Environment, 30(2), 985–1002.

Mukhibad, H., Setiawan, D., Aryani, Y. A., & Falikhatun, F. (2024). Cognitive board diversity and profitability–evidence from Islamic banks in Southeast Asia. Asian Journal of Accounting Research, 9(3), 182–200.

Mundlak, Y. (1978). On the pooling of time series and cross section data. Econometrica: journal of the Econometric Society, 69–85.

Nguyen, T. T. C., & Van Nguyen, C. (2024). Does the education level of the CEO and CFO affect the profitability of real estate and construction companies? Evidence from Vietnam. Heliyon, 10(7).

Prahalad, C. K., & Hamel, G. (2003). The core competence of the corporation. International Library of Critical Writings in Economics, 163, 210–222.

Putra, A. A. (2021). The effect of CEO characteristics on pre-earnings management profitability. Jurnal Akuntansi Dan Keuangan Indonesia, 18(2), 1.

Ren, H., Folmer, H., & Van der Vlist, A. J. (2014). What role does the real estate–construction sector play in China’s regional economy? The Annals of Regional Science, 52, 839–857.

Setyaningrum, D., & Ernestine, I. E. (2019). CEO Characteristics and Firm Performance; Empirical Studies from ASEAN Countries. In Advances in Economics, Business and Management Research (Vol. 101, pp. 423–427). Atlantis Press. https://doi.org/10.2991/iconies-18.2019.81

Sheng, D., Cheng, H., & Yin, M. (2024). Housing Developers’ Heterogeneous Decision-Making under Negative Shock after the High-Growth Era: Evidence from the Chinese Real Estate Economy. Mathematics, 12(12), 1798.

Sun, L., & Zhang, S. (2008). External dependent economy and structural real estate bubbles in China. China & World Economy, 16(1), 34–50.

Tuo, L., Du, R., & Liu, Z. (2023). CFO accounting education on the choice of earnings management. Journal of Corporate Accounting & Finance. https://doi.org/10.1002/jcaf.22629

Uzliawati, L., Muttaqin, G. F., & Kurnia, R. N. (2023). The Effect of The Education Background of The Chief Financial Officer and Profitability on Audit Report Lag. International Journal of Multidisciplinary: Applied Business and Education Research, 4(6), 1816–1822.

Wang, H. T., & Chen, S. T. (2020). The impact of CEO competence heterogeneity and investor risk appetite on corporate bond yield-take the listed companies of the real estate industry as an example. International Journal of Business and Administrative Studies, 6(4), 183–200.

Wijaya, J., Setiawan, A., Yuwono, A., & Prakoso, A. (2022). The Influence of Board’s Educational Background on Indonesian Top Firms Profitability. Indonesian Business Review, 5(2), 132–143. doi:10.21632/ibr.5.2.132-143

Xu, X., Jia, H., Li, J., & Li, J. (2021). Research on the role of real estate economy in China’s national economic growth. In Statistical Analysis on Key Economic Areas of China (pp. 1–28).

Zhang, X., Shen, L., Wu, Y., & Peng, Y. (2010). Core competitiveness indicators: a study of real estate developers in China. Facilities, 28(11/12), 526–541.

Zhang, Y., Cao, C., Gu, J., & Garg, H. (2023). The impact of top management team characteristics on the risk taking of Chinese private construction enterprises. Systems, 11(2), 67.

Zhao, C., & Liao, M. (2015). Study on relationship between officers’ education background and performance of listed companies on growth enterprise board. Open Journal of Social Sciences, 3(10), 95–100.