The Influence Of Enterprise Performance-Risk Relationships By CEO Basic Characteristics Study

Small and medium-sized enterprises in our country as an increasingly important role in economic growth,its operating results will influence the overall level of economic development in our country.Measure the results of a business strategy is good or bad not only consider its performance or risk,but should consider the degree of the relationship between performance and risk.At the same time,the CEO in its investment strategy plays a very important role,their strategic choice for the operation of enterprises plays a decisive role,and their basic characteristics such as age,educational level,tenure,have certain impact for their ability of cognition and management,so as to affect the results of the enterprise strategy.Therefore,this article based on prospect theory and advanced management theory,and empirical study by using 100 the small and medium-sized board listed enterprises in our county verified the performance-risk relationship is U shaped.Based on CEO single characteristic study,the result showed that:age and tenure of CEO three basic characteristics are negative to adjust corporate performance-risk relationship,elder and longer tenure are weakened the corporate performance-risk relationship;but the education level of CEO has no significant effect to the corporate performance-risk relationship.Based on CEO double characteristics study,the result showed that:the younger and short tenure CEO makes corporate performance-risk relationships stronger than other three types;moreover,the elder and short tenure CEO,the younger and long tenure CEO,the elder and long tenure CEO make the performance-risk relationships have no different.When all CEO have younger age,younger and low education level makes the degree of the enterprise performance and risk relationship stronger than younger and high education level,and when all CEO have long tenure,long tenure and low education level makes the degree of the enterprise performance and risk relationship stronger than long tenure and high education level.In this paper,the results for the enterprise in the selection and hire a CEO to make enterprises to achieve a higher performance and lower risk strategic result and analysis of the strategic decision of rivals provide the theoretical and practical reference.