The Influence Of Demographic Traits Of Top Management Team On Corporate Investment

In the process of corporate development, resource allocation plays a fundamental role. Resource allocation process can be regarded as the process of corporate investment, so understanding the impact of factors on corporate investment is meaningful. Previous research on corporate investment are much more from the economic point of view, the corporate governance point of view, corporate financial point of view, but all of view ignore the important role of senior managers as an investment decision makers. Modern enterprise management is difficult to rely on the power of one's own to complete. It requires the concerted efforts of the entire senior management team to complete. The characteristics of the entire team are the combination of individual characteristics. Based on this theoretical and practical background, from the perspective of the senior management team, we study the relation between them and draw up some conclusion and give some recommendations for corporate to invest in human resources policy, which have great theoretical and practical significance for the selection of suitable high-level corporate managers, choose the right level of investment to achieve sustainable development.This paper, based on the upper echelon theory, study the influence of backgrounds of top management team on corporate investment. In this paper, descriptive analysis, the mean value of the independent samples T test methods, structural equation modeling and other statistical methods, data collection around the theme of the content, modeling, parameter estimation, hypothesis testing. The main content and conclusions are as follows:1. Eight characteristics are choose in thin paper, the average age, average tenure, the average level of education, professional background, work experience, the proportion of internal or external, the sex ratio of man. The eight background characteristics and corporate investment, combined with firm size, managerial ownership, the growth of corporate, cash flow construct structural equation models.2. This paper analyses all the data to reveal the stature of top management team and corporate investment. Second, compare two different types of enterprises controller. The research found the state-owned holding enterprises and non state-owned holding enterprises differ in many respects, there was no difference in a few aspects. In the background characteristics of top management team, team size, average age, professional background, internal and external promotion, education, and gender aspects and the level of fixed investment, new capital investment levels are different, work experience in the top management team, the average tenure and The total investment level is not different.3. Through structural equation modeling, this paper presents a fourteen hypothesis, seven of which are verified. Study found the average age of the top management team, the average tenure, the average level of education, the rate of managers promoted from inner, the ratio of male managers, scientific manager of engineering background ratio, high level of managerial ownership, firm size negatively correlated with the level of corporate investment, the level of cash flow are positively influence the level of corporate investment. The study also found that the scale of enterprises not only through cash flow impact on the level of corporate investment, but also impact directly on corporate investment ,which is a new conclusion and indirectly proved the intermediary role of cash flow. Experienced management team and the growth of corporate did not pass the confirmatory factor analysis and eventually not enter the model, so the assumptions related with them have not been verified.In this paper, the main innovation is (1) the eight characteristics make the content more comprehensive. The way of using structural equation model provide the multiple mechanism rather than a single paradigm such as regression for future study. (2) the perspective of top management team's background to study the corporate investment decision-making behavior to listed companies, provide a new analytical perspective. In addition, the expanded range of upper echelon theory. (3) Through this study, provide a new approach for the control of corporate investment, which is to control from beginning-managers.