Empirical Research On The Effect Of Ownership Concentration And Top Management Team Characteristics Affect Performance Of Enterprises

Ownership concentration is a quantitative index for the reaction of equity distribution,the number of shareholders on behalf of the company. In the level of corporate governance, ownership concentration can through the allocation of corporate control rights,and enable enterprises to make market behavior, and lead to different performance. Based on the theory of high order management, top management team characteristics refers to business decision making power, demographic characteristics of top managers responsible for the management of the enterprise. Including executive team's age, education background and career and so on. Top management team characteristics under different ownership concentration have different influence on corporate governance, and the corporate short term financial index or long term market value have different effects. GEM companies in China have tendency of rapid development based on diversification strategy. Diversification strategy may play an important intermediary role in the concentration of ownership and top management team characteristic affect corporate performance in the process of media governance role in external supervision as a supplement of the internal corporate governance, it will be inevitably affect the performance.The media governance under different ownership concentration and top management team characteristics influence the choice of enterprise strategy and enterprise performance is not the same, so the media governance in ownership concentration and top management team characteristics affect enterprise diversification strategy and enterprise performance in the process of playing a regulatory role.In this paper, on the basis of previous research the ownership concentration degree based and top management team characteristics affect corporate performance,the introduction of the diversification strategy as an intermediary variable, negative media report of theconstruction of governance as a moderating variable.This study aims to build ownership concentration, corporate performance, characteristics of GEM companies top management team (short term financial performance and long term market performance), diversification strategy and media management five academic structure of conceptual model. This study obtained 262 valid data by GEM Listing enterprises in CSMAR database and the sina finance and use regression analysis to make empirical test with SPSS 19.0 software. The results showed that in the business enterprise, the ownership concentration degree of diversification strategy and market performance of enterprises have negative impact on financial performance. The characteristic of top management team has positive influence on diversification strategy and enterprise market performance, has negative impact on financial performance. Diversification strategy has positive effects on financial performance and market performance. Diversification strategy in GEM companies top management team characteristics influence the financial performance plays a mediating role.Ownership concentration does not exist on the intermediary role of top management team characteristics and corporate performance in the market. Media governance plays a mediating role of top management team characteristics influence the financial performance of the ownership concentration, there is no mediating effect of ownership concentration and top management team characteristics affect the market performance and diversification strategy.The empirical results of this study show that China's enterprises can carry out diversification strategy to obtain financial performance better,but in the process of implementation of the diversification strategy in the importance of internal governance and external governance, the role of the media can not be ignored. The negative media coverage to the entrepreneurial performance have a negative impact, so enterprises in negative information disclosure should actively taken to reduce the loss of benefits of remedial measures.