| The research of the background characteristics of the Top Management Team(that is called "TMT") and their behavioral decisions is one of the hot spots in recent years, research in this area is mainly based on the " Upper Echelons Theory", Besides, by observationing managerial external demographic characteristics to analyze their mental activities in decision-making and the final effect, relevant theories of social psychology are introduced to the study of the model. The rise of behavioral finance theory formed a certain threat to the traditional financial, behavioral finance think people are not always rational, many decisions are irrational result, the company’s top management team is the most important decision-makers, their irrational decision-making process will have a negative impact on business results, therefore, top management team background characteristics is a topic that worthy of study." Upper Echelons Theory " is the landmark of studies about executives background characteristics, this theory infers that the strategic decisions of enterprises are affected by many factors, it showes the nature of decision-makers, managers are the major part of business decisions, their characteristics may influence their decisions made, thereby influencing the activities of various organizations. After this hypothesis has been bring out, most studies focused on how the the overall level of top management teams background characteristics affect the corporate decision-making and performance, and less concerned about the impact of interaction between individuals within the team, and later the amendment of the theory makes the existing model considers the interaction between every individuals in the course of making decisions, making research more complete, and studies began to focus on the academic impact of the heterogeneity of the top management team on corporate behavior or performance, TMT Heterogeneity is the difference in the important cognitive concepts, values and experience among every individuals, etc. and the differences manifested in demographic background characteristics. There are two key methods to weigh the TMT Heterogeneity,that is Compositional approach and the Relational approach, the study of "Superior-Subordinate Dyads" reflected the Relational approach of TMT Heterogeneity, the concept of the vertical dyads expanding the structure of the study population characteristics from the population view to the perspective of interaction between individual and group.Based on the perspective of TMT Heterogeneity, we can not help but consider, in China’s listed companies, if the population characteristics differences of the vertical dyads in top management team will affect the decisions of executives or not? How? If the managers’expansion behavior will lead businesses to financial distress or not when differences of the vertical dyads in top management team is too large?According to the description that said above, from the relational approach point of view,this study collect the data of A-share listed firms of our country from2008to2012as samples, to discusse the impact of population characteristics of the vertical dyads on the expansion of the enterprise and its financial distress. In China, on the one hand, Board of directors has right to decide the company’s business plans and investment and acquisitions due to the Company Law, and chairman is the unique representative of the Board, on the other hand, the chairman of China’s listed companies closer to the CEO in foreign studies, Therefore, this paper mainly concerns the vertical dyads of "chairman-top managers". To the business expansion, the paper mainly consider these two dimensions:diversification and expansion scale.The results of this study in a non-state-owned listed companies in the sample strongly support the upper echelons theory, but also supports research related conclusions Relations Act, the senior management team heterogeneity, that when analyzing demographic background characteristics executive team, to consider the reaction between individuals within the team, and individual differences in job level makes the process of interaction is affected, futherly influencing the behavior of the team final decision, in addition to the demographic characteristics of vertical theories about the differences in the state-owned listed companies have not been well represented, this article is divided on the overall sample is very necessary. By analyzing the results of this study, it reveals that in the course of constructing top management team individuals,our listed companies should select an appropriate proportion of female executives and senior members of the moderate increase in terms of differences in individual characteristics, because men risk propensity team executives make decisions tend radical, radical strategy generally will bring a lot of uncertainty, and female executives in corporate decision-making process even more robust, in addition, research paper the results also show that social norms in line with the vertical difference between the demographic characteristics of the executive team, and will not increase the financial risks resulting from the expansion of corporate behavior and, therefore, a certain degree of heterogeneity on the executive team can fully understand the business adopt a non-aggressive strategy on the basis of their own circumstances, to enable enterprises to create a good development model. Second, the management of listed companies in making expansion decisions should carefully analyze all of the advantages and disadvantages, thoughtfully considers the negative influences that resulted from strategic change, unless under the emergency circumstances, the company’s strategic change should comply with the principle of gradual and orderly progress, and make rational decisions in full knowledge of their own situation premise. Finally, since the state-owned listed firms’background are of speciality, in the same theory to non-state-owned listed companies and listed companies Shique showing characteristics very inconsistent, so China should build on existing reforms to further strengthen rhythm-owned enterprise reform, more focused on the fair selection of the top management individuals, gradually changing state executive delegate system.This study introduces the concept of "vertical dyads" differences in demographic characteristics, the team considered the interaction of individual positions and individual and group-level differences between the results of this study, not only from the perspective of expanding the executive team Relations Act heterogeneity research perspective, extend the perspective of this area, but also through the introduction of relevant theories of social psychology, the vertical difference between the demographic characteristics of the financial risk and business expansion decisions and possible expansion linked to analyze, reflect comprehensive research, in addition, the conclusions of this paper characteristics between the chairman and the executive for China’s listed companies to optimize its management team to provide some guidance, Finally, based on the analysis of the different nature of property in listed companies, shows that huge distinctions are exit between state-owned listed firms and non-state-owned listed firms in our country’s, strongly infers the urgency of reforming Chinese state-owned listed firms. |
PDF Full Text Request