| With the slowing of current economy growth rate, the competition in domestic market among enterprises is becoming increasingly tense and fierce. Facing such severe domestic economic situation, how to sustain, or drive the company performance is becoming a more and more pressing problem for both elites from theoretical and practical fields. Generally, the enterprises’ Board of Directors is not merely an important carrier of the intellectual capital and the power source of enterprises’sustainable development, but also the key institution to improve its performance, realize corporate goals and achieve the determined vision. The relationship between the composition of Board of directors and corporate performance has always been a hot topic in study area of corporate governance. Indeed, improving and perfecting structure of Board can not only help better efficiency and effectiveness of an enterprise’s decision-making process, but also standardize the function of an enterprise to arrive at higher share price. In the above mentioned study area, many earlier researches mainly focus on the topic whether the existence of some individual characteristics, say a specific experience in a stated industry, yearly compensation level, or former governmental division occupation experience, will do any impact on performance of the company that he/she now works for. But in this paper, different from earlier topic, more attention is paid to the effect of heterogeneity of Board while discussing "the Composition of Board on Corporate Performance".In the paper, I firstly review the relevant studies on the relationship between directors’ characteristics and corporate performance. After that, I find papers written or published before are mainly focus on researching the impact of some individual board director characteristics on corporate performance, and few scholars drew their attention on the topic of heterogeneity of board members; also, the way to measure heterogeneity in major/experience can be bettered somehow to get a more persuasive H calculation method. So, in the paper, I plan to discuss heterogeneity of board on corporate performance both theoretically and empirically.Based on5chosen heterogeneity dimensions, this paper firstly proposes a conceptual model and research hypotheses on the relationship between heterogeneity of board members and corporate performance, and then use Stata12.0software to analyze and manage available data obtained from CSMAR database, and get the following results:(1) Gender heterogeneity, age heterogeneity doesn’t show a significant positive correlation relationship with organization performance within the10%confidence interval.(2) The board directors’term heterogeneity does have a positive correlation relationship with organization performance.(3) Education major heterogeneity、professional experience heterogeneity both have a significant positive correlation relationship with organization performance within the10%confidence interval.So, in order to form a high efficiency decision-making team to better corporate performance, more factors such as heterogeneity between different members shall be considered in addition to individual board member’s experiences.The chief contributions of this paper lie as follows:First, different from earlier studies on the topic of relationship between Board Features and Corporate Performance, this paper investigate the interrelation from the perspective of team heterogeneity to find something different and interesting. Second, given the inherent defect (detailed discussion included in the main paper) of accounting performance index (ROA/ROE, etc.) and market value index (Tobin’s Q/MPV, etc.), we select a more "clean and reliable" TPE index as a substitution variable for corporate performance in our study for the first time in this study area. Moreover, as the way to measure heterogeneity in major/experience can be bettered somehow, tips on how to improve major/experience heterogeneity measurement are also given in this paper. |
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