The Study On The Moderating Effect Of TMT Characteristics On The Relationship Between Investment Efficiency And Firm Performance

Investment decisions is one of the important strategic decisions.It involves funding and allocation efficiency.The success of investment decisions has a fundamental impact on business success or failure.Investment efficiency directly affects the achievement of enterprise value maximization.In China,allocation of resources is inefficient,investment inefficient is widespread in listed companies.Enterprise managers have a decisive role in investment decisions as a strategic decision makers and implementers.According to the upper echelons theory,different background characteristics for team members have a different sense of things and values.So it can influence the decision-making and firm performance.So,to study investment efficiency impacts on firm performance from the point of view of the top management team characteristics.And further research on the moderating effect of top management team characteristics on the relationship between investment efficiency and firm performance.This paper takes literature overview firstly,consists of the relationship between top management team characteristics and firm decisions,as well as the relationship between investment efficiency and performance research were presented at home and abroad.Secondly,it reviews the upper echelons theory,the principal-agent theory and the related concepts.And in accordance with the influencing mechanism among top management team characteristics,investment efficiency and firm performance,it puts forward research assumptions.Finally,according to the Shenzhen and Shanghai A-share listed companies from 2012 to 2014 yearly data,a total of 544 samples as the research object.We use DEA to measure the investment efficiency,and empirically research on the relationship between investment efficiency and firm performance.And adding to top management team characteristics variables and the interaction between top management team characteristics variables and investment efficiency,multivariate regression model is established respectively,test the moderating effect of top management team characteristics on the relationship between investment efficiency and firm performance.The conclusions are obtained in the research as follows:(1)Average age between investment efficiency and firm performance plays a negative role in the regulation,that the relationship between investment efficiency and firm performance decreases with the increase of the top management team with an average age.(2)Average education between investment efficiency and firm performance positively regulates the role that investment efficiency relationships with firm performance increases average education increases.(3)Age of heterogeneity between investment efficiency and firm performance negatively regulates the role that investment efficiency relationships with firm performance decreases with the increase of the top management team with age of heterogeneity.(4)There is no direct relationship between education of heterogeneity and firm performance,education of heterogeneity between investment efficiency and firm performance has no moderating effect.(5)Profession of heterogeneity between investment efficiency and firm performance positively regulates the role that investment efficiency relationships with firm performance increases profession of heterogeneity increases.(6)Government background of heterogeneity between investment efficiency and firm performance plays a positive role in the regulation,that the relationship between investment efficiency and firm performance increases with the increase of the top management team with government background of heterogeneity.(7)Financial profession between investment efficiency and firm performance plays a negative role in the regulation,that the relationship between investment efficiency and firm performance decreases with the increase of the top management team with the proportion of financial staff.(8)There is no direct relationship between government background and firm performance,government background between investment efficiency and firm performance has no moderating effect.Finally,based on the empirical results,combined with the Chinese current situation of listed companies investment efficiency and background characteristics,we make the following policy recommendations: optimize the structure of top management team background,maintain a reasonable age and professional background structure,and increasing team overall education level.Keep a reasonable input-output ratio,improving investment efficiency.Strengthen the supervision and management mechanism of investment activity and avoid ineffective investment.