The Positive Research On Industry Difference Of The Relationship Between Characteristics Of Top Management Team And Corporate Performance Based On HLM Method

As a bond based on the company's shareholders and staff of employees, the subject of the company operation and management, the top management team has always been the core of corporate governance and enterprise strategic decision makers and promoters, its overall governance efficiency directly affects the company performance and the interests of stakeholders. However, there are certain differences in the relationship between the top management team characteristics and enterprise performance during different industries. Based on the upper echelons theory, industrial organization theory and the enterprise's financial performance theory, this dissertation took the data of the listed companies from 22 industries to make an empirical analysis on the homogeneity and heterogeneity relationship by the method of the hierarchical linear model (HLM).The results mentioned that there is a positive correlation between the top management team characteristics and the corporate performance between different industries. Industry competitiveness positively adjusts the relationship between the top management team characteristics and the corporate performance. In the maturity of the industry, the top management team characteristics have a significantly positive relationship with the corporate performance. In the growth of the industry, the positive relationship is stronger, while the positive relationship is less weeker in the recession of the industry.This study uses the hierarchical linear model (HLM), which is a new method to decompose the variable regression coefficient of the model into fixed part and random part, can effectively distinguish the influence from the enterprise level or industry level to explain the differences of the existing research conclusion. In addition, the dissertation expands the top management team characteristics effects on the corporate performance from the micro level to the medium level. Between different industry background and organization situation, the enterprise's management and strategic decision will inevitably be regulated by the industry characteristics.