Research On Top Management Team,Internal Control And Strategy Difference

Strategic difference refers to the extent of which companies choose to deviate from industry trends in an industry.Its impact on the enterprise is just like a "double-edged sword”,which may bring greater benefits or greater losses to the enterprise.How to control strategic differences to improve its effectiveness?This is not only a realistic choice,but also a question which need to be studied theoretically.However,although many scholars have done a lot of research in this field and have made a lot of creative theoretical achievements,there are still some areas worthy of further study.The research space left for this paper mainly in:As an institutional arrangement to ensure the implementation of corporate strategic objectives,does internal control have an impact on strategic differences?On the condition of the separation of ownership and control power in enterprises,managers control corporate,how do managers' gender,age,education and tenure affect the strategic differences?What is the moderating effect of the manager's demographic background on the relationship of internal control and strategic difference.A comprehensive and in-depth study of these issues will enrich the strategic management theory,internal control theory and the higher echelon theory,and have great theoretical significance to improve the internal control,build the top management team and guard against strategic risks.In this paper,based on domestic and foreign research results,taking advantage of strategic management theory,internal control theory and the higher echelon theory,using normative analysis and empirical analysis,along the way of”asking questions--analyzing problems--solving problems",sample as A-share listed companies in Chinese two stock markets of Shanghai and Shenzhen between 2011-2014,and combined with the nature of property rights of the listed companies in China,the topic was studied.There are four parts in this paper:First,study on the measurement of internal control and strategic difference;Second,empirical study on internal control and strategic difference;Third,empirical study on the relationship between managers' background characteristics and strategic differences;Fourth,empirical study on the managerial background characteristics,internal control and strategic differences.Based on the research,this paper puts forward some viewpoints and conclusions,mainly in:(1)The results of the influence of internal control on the strategic differences are that the high quality of internal control can effectively inhibit the strategic differences,but which is not as significant in the state-owned listed companies as in the non-state-owned listed companies;Further analysis shows that the larger the strategic difference is,the larger the volatility of firm performance will be.(2)The results of the influence of managers,background characteristics on internal control indicate:the average age of TMT significantly negatively correlates internal control,the average education level and the average tenure of TMT significantly positively correlate internal control,and all these significant correlations exist only in non state-owned listed companies;the chairman's age is positively correlated with internal control,the relationship of the chairman's tenure and internal control in is the inverted U type,the chairman' expected tenure and internal control have a negative correlation,there are significant differences between the impact of the chairman,the background characteristics on internal control in the state-owned and which in non state-owned listed companies.(3)The results of how managers' background characteristics affect the relationship of internal control and strategic differences include:first,the moderating effect of TMT's different variables are:the average age plays positively,average tenure first negatively then positively,the average expected term negatively;second,the moderating effect of chairman' background characteristics are:age plays negatively,tenure positively first then negatively,expected tenure negatively;three,there are significant differences of moderating effect of TMT's background characteristic and the chairman' background characteristics in state-owned and non state-owned listed companies.In addition,based on these research conclusions,this paper puts forward some countermeasures and suggestions such as the reasonable control strategy differences,strengthening the construction of internal control,optimize the management team,improve the democratic decision-making mechanism and deepen the reform of enterprise property rights.The innovations of this paper are mainly in:(1)From the perspective of managers'background characteristics,this paper establishes a theoretical analysis framework to study how internal control affects strategic differences.Although massive research about the strategic difference has been carried on and many creative theoretical achievements has been obtained,there are still some problems worthy of further study,such as the impact of internal control on strategic differences,and the moderating effect of the manager's background characteristics on the relationship of internal control and strategic difference.So,the research on these issues will help to establish the theory analysis framework of internal control influence strategic differences from the perspective of managers' background characteristic,which provides a new perspective and ideas for the further study of strategic differences.(2)The mechanism of internal control is revealed from the deep level.A large number of studies show managers with different gender,age,education background,function background and tenure will have different effects on the decision-making and performance.Because managers with different backgrounds will have different psychological characteristics and behavior choices.However,research about the influence factors of internal control is implicitly assumed that managers are homogeneous without consideration of the heterogeneity of managers.Therefore,from the perspective of the managers' background characteristics,this paper studies the impact of managers' background characteristics such as gender,age,education,function background and tenure on internal control and the moderating effects of these background characteristics on the relationship of internal control and and strategic differences.undoubtedly,it helps to grasp the driving factors of internal control from the deep level and to reveal the internal mechanism of internal control.(3)It provides new empirical evidence for the comprehensive and in-depth understanding of the economic consequences of internal control.The academic research on the economic consequences of internal control little focuses on the impact of internal control on strategic differences.Therefore,the research in this field is not only helpful to enrich the content of the strategic difference research,but also to provide new empirical evidence for the comprehensive and in-depth understanding of the economic consequences of internal control,so as to expand the research field of the economic consequences of internal control.In addition,based one these conclusions,this paper also puts forward some countermeasures and suggestions such as how to strengthen the construction of internal control of enterprises,to optimize the management team structure,to improve the democratic decision-making mechanism,to prevention and control of strategic risks.