The Dynamic Relationship Between Top Management Team Heterogeneity And Corporate Performance

With the development of economic globalization, China’s listed companies face competition from a single industry and expand the local area to cross-sectoral, regional and even cross-border, in the face of multi-industry, cross-regional competition under pressure, the information needed to enterprises, greatly increased resources, but also requires more processing information, the ability to integrate resources. Senior management team is the core of the resource, and their decisions affect the business performance and future development. Executive team decisions influenced by the executive team composed of, including the impact of educational level heterogeneity, Education heterogeneity, age heterogeneity and heterogeneity term and other factors. Then the executive team constituted under the diversification and internationalization of the environment in the end what kind of impact on business performance? Between senior management team heterogeneity and firm performance linearly related? With the diversification and internationalization degree of change, the relationship between the senior management team heterogeneity and firm performance vary between whether and what kind of changes will happen? These are currently in the process of building a listed company’s executive team needs continued concern. In this study, 117 company for 14 consecutive years 2000-2013 in China listed as a sample, using Gonzalez, who recently developed panel smooth transition regression model(panel smooth transition regression models, PSTR) for quantitative analysis of TMT heterogeneity and Performance nonlinear relationship in the context of diversification, the model can not only effectively depicts the Variations section of the panel data, and allows the model parameters with the changes and make a smooth transition variables are non-linear transformation, so it can determine TMT heterogeneity and firm performance relationship is due to varying degrees of diversification and non-linear transformation occurs.The source of research topics was "the new CEO and senior management team heterogeneity characteristics falling business transformation strategic decisions and performance impact on the performance of research" by the National Natural Science Foundation of China(71172073). Screening of Chinese listed companies from 2000 to 2013 in the continued listing of the Company’s normal sample, using panel smooth regression model(PSTR) and use matlab2010 research hypothesis can be tested, the results showed that: between TMT heterogeneity and firm performance of non-linear relationship, the relationship between the two as well as the degree of diversification of the change in the degree of internationalization changing. In examining the relationship between TMT heterogeneity, diversification strategy and business performance, the model threshold 0.0569 and 0.5126 were divided into three institutions; TMT heterogeneity level of education, professional education institutions and high heterogeneity of the system at low Under the corporate performance is not related to the system in the middle of a positive correlation with corporate performance. TMT age heterogeneity at low institutional and high-performance system is not related to the business, in the middle of the institutional and corporate performance negatively. Heterogeneity term diversification when changes are not related to business performance. In the study of the relationship between TMT heterogeneity, international strategy and corporate performance model, PSTR 0.1548 threshold model is divided into high and low system; TMT heterogeneity level of education, age heterogeneity at low institutional and corporate Performance negative correlation system at high positive correlation with corporate performance. TMT heterogeneity and level of education tenure heterogeneity at the level of the system are not related to business performance.