Study On Top Management Team Heterogeneity's Effects On Financial Performance In ZNDQ Company

Top management team formulates the enterprise strategy and determine the future direction of the enterprise.It plays an irreplaceable role in the process of enterprise development.Compared to main board listed companies,GEM listed companies have a smaller scale,a lower level of governance and a weaker response to risk.Therefore,the development is largely dependent on top management team.ZNDQ company has been an abnormal change of top management team since its IPO.The change directly leads to changes in the trait differences among members.From Upper Echelons theory,the difference in the characteristics of members is that heterogeneity leads to different strategic choice behaviors,influences the judgment of the executives in the decision-making process and enterprise operating performance.ZNDQ company's financial performance is lower than that of GEM equipment manufacturing industry.It shows a downward trend.Then,whether the volatility of top management team heterogeneity can negatively affect the financial performance of ZNDQ company.And the article will focus on this research.The main contents include two parts:First,select a total of 259 companies in GEM equipment manufacturing industry from 2010 to 2015 and roe to measure financial performance.Heterogeneity includes age,education level,overseas background,professional background and comprehensive.It shows that:age,overseas background,and comprehensive heterogeneity have inverted U-type relationship with financial performance.Education and occupation background heterogeneity have positive U-type relationship with financial performance.According to the influence relationship,the optimal interval of each heterogeneity dimension is determined.Second,the ZNDQ company was compared with the industry.The result shows that the ZNDQ company's top management team heterogeneity is characterized by low age and occupation background heterogeneity,unstable educational level heterogeneity,and high overseas background heterogeneity,which lead to low comprehensive heterogeneity.Therefore,in the process of top management turnover,ZNDQ company can optimize the structure of top management team by improving age and occupation background heterogeneity,balancing educational heterogeneity and reducing overseas background heterogeneity.