The Autarchy Of Entrepreneur And Corporation's Performance

The impact of entrepreneur's characteristic to corporate performance is the forefront direction of company research. In this paper, surveyed matching data of entrepreneurs and enterprises is used to study the impact of socio-economic characteristic of entrepreneurs and decision-making on corporate profits. We found that entrepreneurs with dictatorial decision-making characteristic of the "indication style" has a positive impact on corporate profits. While other types of decision-making has no significant impact on corporate performance. The decision-making styles of entrepreneurs have significant impact on corporate performance and have high coefficient. For larger company and entrepreneurs with higher education, dictatorial decision-making style has a larger positive impact on corporate performance.This paper also found that entrepreneurs with higher education level and political status has a greater profit level, and that asset size of company has a significant positive impact on corporate profit, while asset-liability ratio has a significant negative impact. The impact of the income gap in the company on corporate performance increased at first then drop down, showing inverted "U". Thus there exists a best income gap to maximize corporate profit.The conclusion in this paper that dictatorial decision-making style helps to improve corporate performance is different from evidences that come from developed countries. The probable reason is that Chinese companies and foreign companies are not in the same stage. The majority of Chinese companies are in the stage of imitating advanced companies and the information company faced is relatively simple when companies are making decisions. So dictatorial decision-making style can reduce decision-making time, improve efficiency and reduce transaction costs to improve company performance.