Research On Top Management Team Characteristics And Over-investment Behavior

The rapid growth of China has provided huge investment and development opportunity to many companies, but because of the complexity of decision process and multiplicity of influence factor, the investment decision results are not always give the maximum of enterprises'value, contributing to over-investment, which gives huge damage to enterprises'value and its'development. Upper-echelons Perspective theory shows that the value concept and cognize foundation in an organization reflect a company's output, including strategic decision and organization efficiency. Meantime, over research has proved managers'influence on innovation. Thus, in perspective of TMT characteristics this paper aims to find the function of TMT, to provide theoretic basis to keep away this non efficiency activity, and gives some suggestions.In requirement of research, this paper takes the listed company during 2006 and 2008 as an object, after measuring the over-investment and taking the considering of the other reasons, this paper analysis the influence of the background of TMT. The results are as followings: TMT characteristics have some effect on over-investment. To be specific, average education degree, specialty background, team scale have negative effect on over-investment, male proportion in a team, heterogeneity of patriarchate has positive effect on over-investment.