Top Management Team Heterogeneity And Firm Performance Of M&A: An Empirical Research On Chinese Listed Companies

Mergers and acquisitions as an effective measure optimizing the allocation of resources, improving economic efficiency and achieving economies of scale, has been widely used. M&A activity has developed more than 100 years,five large-scale waves of M&A activities with different characteristics have happened. With China's stock market development and the accelerated process of reform and opening up,the M&A activities in China has developed quickly, especially after China's accession to WTO.How to improve firm performance of M&A is not only a very important problem for many scholars in different countries to research, but also a very important problem in M&A activities.Top management team is important to firm performance of M&A since it takes the mission of establishing and implementing corporate M&A strategies.The main purpose of this paper is to apply the basic theory of top management team (Upper Echelons Theory) for a theoretical analysis, then test the relationship between top management team heterogeneity of China's listed companies with the performance of M&A in order to improve the performance of M&A, and to build top management team befittingly.After reviewing existing literatures, this empirical research advances a research model and proposes relevant hypotheses according to China's unique institutional environment and cultural traditions. Selecting China's listed companies which have taken place representative M&A events as a whole sample. Data is analyzed by SPSS,and then the implications of the empirical results are discussed from China's unique cultural and institutional perspectives.The results of empirical research in this paper as following:Firstly, top management team tenure heterogeneity and career experience heterogeneity are both negative related to performance of M&A.Secondly, there is negative adjust relationship between the interaction on proportion of state owned stock and top management team tenure heterogeneity. Thirdly, there is negative adjust relationship between the interaction on industry dynamic and top management team career experience heterogeneity.This paper is divided into five chapters:The first chapter introduces the research background, research significance, research content, research methods and research process.The second chapter provides an overview of the domestic and foreign literature about top management team in order to lay a solid theoretical foundation for building models and making hypothesis.Chapterâ…¢is on the basis of theoretical derivation to build models, make hypothesis, select variables and determine a comprehensive index system.Chapter IV mainly selects the study samples, introduces the source of data and variable measurement method, uses variety of statistical research methods to make hypothesis, and presents the empirical research results.Chapterâ…¤deeply analyzes the empirical research findings, and combines with the actual situation of Chinese enterprises to make reasonable suggestions.This paper analyzes the relationship of top management team heterogeneity and firm performance of M&A under unique Chinese institutional context and cultural traditions while severalmoderator variables being introduced. This research broadens the limitations of Upper Echelons Theory, complements and enriches the contents of top management team heterogeneity research in China. Besides, the selecting of the research methods in this paper, such as principal components analysis, provides a new angle for further relevant research in China.