An Empirical Study On The Effect Of Top Management Background Characteristics On Financial Distress

At present,China's economy is undergoing an important period of speed shifts,structural adjustments,and power conversions.Corporate development faces many uncertainties and financial risk challenges.Resource integration and large-scale development among industries have become increasingly fierce.In the fierce market competition environment,Especially in the current situation of high financing pressure,because of the improper management and development strategy of the senior management team of the company,the company is in financial distress,and even examples of bankruptcy are endless.This allows us to reflect on whether the characteristics of the corporate executive team in financial distress reflect different financial risk prevention.How does the background of the senior management team affect the financial distress of the company? From the perspective of financial risk prevention,once the senior management team of the company does not pay enough attention to financial risks in strategy formulation,any mistake in decision-making will lead to liquidity difficulties in the short term.If this type of status cannot be eliminated for a long time,companies will fall into the trap.Financial distress is even on the brink of bankruptcy.In summary,this article mainly examines the influence of the characteristics of the senior management team on financial distress,and uses literature induction,normative analysis,and empirical analysis to collect 2583 sample data for the Shanghai-Shenzhen A share for the three years from 2014 to 2016.The sample data were descriptive,relevant and regression analysis.From the perspective of financial risk prevention,the impact of the background characteristics of the senior management team on financial distress was analyzed and tested.The empirical results show that: the scale of senior management team,academic characteristics and financial dilemmas are positively correlated,and the age,professional background characteristics are negatively correlated with financial distress,and the correlation between the characteristics of senior management team tenure and financial distress is not significant.Based on the relevant literature research and empirical results of this article,this paper provides relevant suggestions for optimizing the structure of senior management teams,preventing financial risks,and improving corporate governance mechanisms.