Research On The Influence Of TMT' Characteristics And Managerial Power On Firm Performance

Good performance is always the ultimate goal of managers and shareholders,and managers as the company's makers and performers are the company's core human capital.They have an important impact on firm performance.Especially in the 21 st century,with the development of the global economy,the importance of human capital in the development of the company gradually emerged.Top management team(TMT)gathers the best managers in the company,so TMT is the driving force for enterprise innovation and development.Therefore,based on the background characteristics of TMT,this article studies how to reasonably configure the scarce resources of executive members and to improve the performance of the enterprise.In order to study the correlation between the background characteristics of TMT and the firm performance,this article adds the managerial power variable to explore the "black box" of the upper echelons theory.Based on the literature review and theoretical basis,this article puts forward four hypotheses.The data of the listed companies in China from 2007 to 2014 are selected as the research samples.Research indicates:(1)The average age of executives has a significant negative impact on firm performance.The average tenure of executives has a significant positive impact on firm performance.(2)The heterogeneity of executive age has a significant positive impact on firm performance.The heterogeneity of executive tenure has a significant negative impact on firm performance.(3)There is a positive correlation between managerial power and firm performance.Especially,the greater the power of ownership and reputation,the more improvement of firm performance.(4)Managerial power can enhance the correlation between TMT characteristics and firm performance.In addition,grouping managerial power found that the regulatory effect is significant only in the high-level management team.This result further verifies the positive moderating effect of managerial power.Finally,on the basis of the research conclusions,the author puts forward some suggestions for the better allocation of TMT:(1)Paying attention to the cultivation ofyoung executives;increasing the age gap of executives.(2)Improving the manager's tenure;promoting the stability of team members.(3)Improving the corporate governance structure;regulating the reasonable management authority.