Quantity Research On The Relationship Of Leaders’ Communication Competency And Company Performance

This thesis focuses on the research of relationship between corporate top leaders’communication competency and their company’s performance. The theoretical analysisindicates that these two correlate through the intermediary effect of top leaders’leadership. And this paper tries to use an quantity analysis to proof this correlation.The sample consists of30business banks from both China mainland and HongKong area. The performance indicator is ROAE (average return of equity) of these30companied in2010. An innovative method of measuring leaders’ communicationcompetency is adopted in this thesis that is expert evaluation. Experts in related fieldsevaluate the CEO letters to shareholders in annual reports.The measurement scale is based on Rubin&Martin’s (1994) interpersonalcommunication competency scales. A pilot test is implemented through an expert’sevaluation of30samples based on the initial scale to test the reliability and validation ofthe scale. This pilot test improved the initial scale and verified the result scale’sreliability and validation. The final scale consists of2subscales and8items.5experts use this final scale to evaluate the samples and the average scores of thesamples are used as final scores for data analysis to verify the model and2subscales’correlation with performance. The final results reveal that communication competencyhas a weak positive correlation with performance and the subscale of interpersonalcompetency has a strong positive correlation while written language ability has nocorrelation with corporate performance. The two subscales have different relationshipwith leadership and this further verifies the theoretical model.The material of this thesis stays in the field of written communication but the finalresults can be applied to the whole communication competency field. The thesisprovides helpful conclusion for the meaning of improving leaders’ communicationcompetency and the direction of this improvement. More importantly, this paperproposes a new research method in this area and supports future researches.