Core Executive Team Background Characteristics And Corporate Investment Preferences

Today, in competitive market, an effectively investment decisions determined the long-term development and business performance of an enterprise. The rapid development of high-tech listed companies relying on enterprises constant investment and Continuously improve the level of technology research and development, therefore, in order to maintain the competitiveness and the growth force of enterprises, need to continuously to increase the total investment intensity and R&D investment intensity, China’s high-tech industry as a whole, however, there is the phenomenon of lack of investment, while the high-tech listed companies in R&D investment intensity is lower, hindering the development of China’s high-tech industry. Existing research on corporate investment is generally from the point of view of corporate governance and financial to analyze the factors that affect corporate investment decisions. Enterprise core executives as a key decision-makers, Relevant research about the core executive background characteristics affect business investment preferences are Inadequate.This paper reviews the research literature and the senior echelon theory, commission agents and other related theories, and make reviewed and Commentary against executive’s characteristics and investment decisions of the relevant research, on this basis put forward the hypotheses of this article for the special case of China’s high-tech listed companies. Article take113the high-tech listed companies in China as the research object, selected the2009-2010two-year cross-sectional data of listed companies, a total of209valid samples and with level of education, tenure, and professional and technical strength of core executive team three terms of five indicators as explanatory variables, the total investment intensity, the intensity of foreign equity investment and R&D investment intensity three indicators as explanatory variables, to build a multiple linear regression model. In this paper, through descriptive statistical analysis, correlation statistics and regression analysis of the data to test the null hypothesis of this paper.Empirical studies have shown that the average education level, the tenure of their offices, professional technical strength of the core executive team of high-tech listed companies and related heterogeneity of the background characteristics are significantly associated with business investment preferences. The higher the average education level and its heterogeneity, the more we can promote the strength of the total investment and R&D investment; the higher heterogeneity of education, the lower intensity of foreign equity investment; average tenure of their offices was significantly negatively correlated with total investment intensity and R&D investment intensity and significantly positive correlation with foreign equity investment, tenure heterogeneity was significant positive correlation with total investment intensity and R&D investment intensity; professional and technical strength was significantly positively correlated with total investment intensity and R&D investment intensity and was significantly negatively correlated with foreign equity investment.In this paper, combined the empirical results and the specific situation of high-tech listed company, proposed high-tech listed companies should employ core executives with a good level of education, and to maintain an appropriate level of education heterogeneity, control the enterprise core executives tenure to ensure that a certain percentage of the core executives timely flow, assurance the core executives of professional and technical background take advantage of the proportion. To some extent, these initiatives can improved the investment preferences of high-tech listed companies.