Executives’ Financial Experience, Risk Preference And Corporate Over-speed Growth

Modern corporate governance characteristic of the separation of ownership and control highlights the important position of executives in decision- making. Upper echelons theory, behavioral consistency theory and behavioral financial theory emphasizes the important influence of executives’ personal traits on the decision. Growth is an important measure of operating performance and development prospect of listed companies, and is also the important content of executives’ decision. Based on the realistic background of listed companies’ over-speed growth phenomeno n is widespread, the probability of executives with financial experience is low and the executives’ risk preference is inconsistent, thesis studies the relationship of executives’ financial experience, risk preference and company o ver-speed growth from the perspective of upper echelons theory, behavioral consistency theory and behavioral financial theory.Thesis is based on the related literature of the economic consequences studies of execeutives’ financial experience, executives’ risk preference studies and company over-speed growth studies. According to company growth theory, upper echelons theory, behavioral consistency theory and behavioral financial theory, thesis puts forward the theoretical analysis framework of executives’ financial experience, risk preference and company over-speed growth with the combination of reality system background. Then from the perspective of criterion and demonstration, thesis applies the value matching method, T test method, multiple linear regression method and mediation effect test method to explore the influence of executives’ financial experience on company over-speed growth, the influence of executives’ financial experience on executives’ risk preference, the influence of executives ’ risk preference on company over-speed growth and the influence of executives’ financial experience on company over-speed growth by the transmission of executives’ risk preference. Research results show that executives’ financial experience can reduce the level of company over-speed growth, executives’ financial experience can reduce the level of executives’ risk preference, executives’ risk preference can improve the level of company over-speed growth, and executives’ financial experience can influence company over-speed growth through executives’ risk preference. According to research conclusions, thesis proposes to establish and perfect executives’ selection mechanism, establish and perfect executives’ learning mechanism, establish and perfect companies’ growth evaluation mechanism.Based on the system background of transition economic in C hina, thesis studies the relationship of executives’ financial experience, risk preference and company over-speed growth. Thesis extends the literature of executives’ background characteristics on company policy; enriches company growth theory, upper echelons theory, behavioral consistency theory and behavioral financial theory to some extent; provides basis for selecting executives, controlling executives’ risk preference and mitigating company over-speed growth.