We explore whether directors [of public companies in China] with foreign experience lead to performance improvements using a unique dataset from China and by exploiting exogenous variation in the supply of directors with foreign experience caused by policy changes. We hand-collect information....Right there they have our attention. Not that their theory is at all remarkable; Chinese executives with experience outside China have unique skills to offer when they return to their homeland;
We find that: We also show that these improvements in performance are accompanied by changes in corporate policies that are generally set by the board....Which they call a 'brain gain'. Elementary, my dears.