The Empirical Research On The Relationship Between Characteristics Of Top Management Team And The Growth Of Enterprises

After the financial crisis, corporations will confront the more fierce competition. TheChina’s state-controlled company, who plays an important role in the development of China’seconomy society, will have significant impact on the development of China’s macroeconomy.The top management team, as the most valuable human resource of a corporation, will havemore attention of the scholars. The research on the relationship between characteristics of thetop management team and the growth of enterprises will benefit for corporations designing thesuitable top management team. These researches will have practical significance for guidingcorporation’s sustainable development. There are so many essays about the empirical researchon the relationship between characteristics of the top management team and the growth ofenterprises on the western academic circles. There are little essays on the Chinese academiccircles, especially when it comes to the background of China. Nowadays, after a thirty-yearshigh-speed development, China is in the stage of economic transition and institutionaltransformation. With the background of China, this paper will reveal the relationship betweencharacteristics of the top management team and the growth of enterprises in the state-controlledcompany. The policy suggestions will be promoted based on the empirical research.After reviewing the former research, this paper will apply the principal componentanalysis method of the software SPSS16.0to design the evaluation for the growth of thestate-controlled company. The CNINFO, the GTA and the Xenophon database, supplied thedata for this paper. The factor analysis method has been used to analyses the growth for the104firms between2011to2013. The descending order verifies the companies into three categories,strong growth, moderate growth and weak growth. In terms of the characteristics of the topmanagement team, biographical characteristics and heterogeneity characteristics have beenanalysed throughly. Both characteristics have four variables. In the part of empirical research,the descriptive statistics and the regression model have been used to verify the comprehensivehypothesis, what improved the reliability and validity of the verification.There are the conclusions. The average age of the state-controlled company does not havea significant relationship with the growth of enterprises. The average tenure has U model with the growth of enterprises. The average degree has direct proportional relationship with thegrowth of enterprises. The more top management team officers have govern background thestronger growth will the enterprises have, which means they have direct proportionalrelationship. The age heterogeneity characteristics of the top management team have negativecorrelation with the growth of enterprises. The degree heterogeneity characteristics of the topmanagement team have a positive correlation with the growth of enterprises. The tenureheterogeneity characteristics of the top management team have a negative correlation with thegrowth of enterprises. The experience heterogeneity characteristics of the top managementteam have a negative correlation with the growth of enterprises.