The Background Of Executives,Capital Structure And Operational Performance

Small and medium-sized enterprises are an important carrier of the implementation of public entrepreneurship and innovation.They promote the economic growth of our country,especially the rural economy,increase the urban and rural labor employment.They not only play an irreplaceable role in technological innovation and social harmony and stability,but also has extremely important strategic significance for promoting the development of China's national economy and society.But now our country is in the period of economic transformation,small and medium-sized enterprises are generally facing some challenges—the global economic downturn,the backward development mode,the low operating mode—some of the original competitive advantages are losing.How to improve the corporate performance requires our senior management team of small and medium-sized enterprises to think about their way and the future.As the highest form of human capital,senior executives are the most rooted resources in the enterprise.Their human capital value is more obvious in the enterprise.Executive background characteristics will eventually have an effect on the enterprise and its development.From this point of view,it is of great significance to study the performance of an enterprise.Capital structure is the comprehensive performance of corporate financing source.As the concentrated reflection of rights and obligations of stakeholders,it is the result of the executive strategy and is certainly affected by the background characteristics of executives,and then influence enterprise performance.Therefore,this article assumes that the capital structure can be used as an intermediary variable between executive background characteristics and operating performance—the former affects the capital structure,and then the ultimate goal of corporate performance through the company's governance structure.Based on the above background and the summary of domestic,foreign research results and business performance evaluation theory this article takes China's small and medium-sized enterprises from 2012 to 2015 in Shenzhen as the research sample,using the high-order theory and the capital structure theory,to comprehensively calculate operating performance with factor analysis from executives' gender,age and term of office.First of all,it studies the influence of executive background characteristics on businessperformance.The regression results show that the gender ratio,average age and average tenure of executives are negatively related to the firm performance;Then,the paper studies the effect of the executive background characteristics on the capital structure.The empirical results show that the gender ratio of executives is positively correlated with the capital structure;the average age and the average tenure are negatively correlated with the capital structure.Finally,it studies the intermediary effect of the capital structure.The regression results show that the capital structure plays a partial mediating role in the executive background and operating performance.The innovation of this paper lies in:on the one hand,the introduction of the background of the executives into the study of capital structure and business performance,to explore the relationship between the three;the other hand,the capital structure as a management background affect the performance of intermediary variables,a theoretical study on the path of the impact of business performance.The significance of this research is on the one hand,under the special system and background of our country,it provides theoretical support for the role of the executive background characteristics in the capital structure decision-making and the increase of operating performance,which is helpful for enterprises to improve work efficiency and reduce the cost and then is beneficial to improve the competitiveness and long-term development of enterprises;On the other hand,it is helpful to strengthen the characteristics of capital structure and operating performance and avoid the disadvantages so as to optimize the capital structure of enterprises,and to provide reference for improving the value of listed companies.Finally,companies can begin to establish the relevant talent pool.According to their own development needs they train and select relevant executives,at the same time,executives can also play their greatest value based on the situation and the needs of the enterprise.