An Analysis On The Matching Between Top Management Team Characteristics And Diversification Strategy

The senior management controls the enterprise and plays an increasingly crucial role in decision making process due to the improvement of property system and the market has a decisive effect in resources allocation after 2013. The upper echelons theory, proposed by Hambrick in 1984, analyzed the relations hips among senior management character, strategy option and corporation performance. Top management character has gradually been in a hot area of research afterwards.This thesis analyzes that senior management character how to match diversification strategy, which will focus on the following two points, one is how senior management character influence enterprise performance and another one is how senior management character adjust nexus between diversification and effectiveness.First of all, this thesis will summarize relevant theories of economics and management, and defines the research objects, including senior management character, diversification strategy and firm performance. Secondly, it will study diversification strategy’s impact on performance and senior management character’s adjustment on diversification and corporation performance through collecting cross-section data of listed corporation in 2012-2014 and making empirical analysis by SPSS software.The analysis conclusions of this thesis are r elated diversification strategy has an insignificant positive impact on performance while unrelated diversification has a significant positive influence on its profit. Age plays no regulatory role neither in related nor unrelated diversification. For related diversification strategy, educationplaysno regulatory role. Term strengthens the relationship between related diversification and corporation profit while gender weakens that. For unrelated diversification, education strengthens the positive relationship between unrelated diversification and performance while term and proportion of women member weakens it.