Research On The Relationship Between CEO’s Financial Work Experience And Enterprise Capital Structure And Operating Performance

In the 1980 s,the relationship between professional experience of CEO and CEO’s appointments began to draw the attention of academia.In recent years,more and more companies tend to employ executives who has the financial professional experience as CEO.Through the analysis of information we can found that the proportion of financial experience CEO showing a rising trend in this year.So we will pay more attention to what kind of company appointting CEO with financial experience,as well as CEO with financial experience will whether improve the operating conditions.In the current background of economic transformation in China,the status of small and medium-sized enterprises in the national economy is rising.Compared with the mature large enterprises,small and medium-sized enterprise’s management is complex.The responsibility of CEO is more multifarious,and the selection and appointment of CEO will be more about future of enterprise.With the development of capital market and in the background of company financial situation reveal and supervision,small and mediumsized companies’ appointment of the financial experience CEO attract more attention.Formly research mainly focused on what effect senior executives’ characteristics have on company’s business performance and capital structure.Study of financial experience CEO also focuses on its influence on capital structure adjustment and ignored the influence on business performance.So the purpose of this paper is to research the the relationship between CEO’s financial work experience and enterprise capital structure and operating performance.On the one hand,what kind of private small and medium-sized enterprises prefer to hire accounting and financial experience CEO.On the other hand,on the basis of researching the private small and medium-sized enterprises’ financial experience CEO’s effect on capital structure,we will analyse these effection on operating performance and capital structure,in order to draw some valuable conclusions.This paper first introduces the related concepts and theoretical basis,review research results of domestic and foreign scholars research in the related theory.Based on these,we design the research content,hypothesis and research method.Our paper based on Smallmedium Size and Gem enterprises in 2006 to 2013 firstly use logit model to analyse the influncing factors of private small and medium-sized enterprises to choose the financial experience CEO,included enterprise capital structure and operating performance.Secondly referring the partial adjustment model and DID model analyse financial experience CEO’s effect on private small and medium-sized enterprises’ capital structure adjustment.Finally,based on previous part,we use simultaneous equations model to analyse financial experience CEO’s impact on capital structure and business performance.The study discovered that firstly,capital structure and financial experience was significantly associated with CEO’s appointment,relations are U;secondly,the financial experience CEO can significantly improve the private small and medium-sized enterprises’ capital structure adjustment speed;finally financial CEO has a significant effect on private small and medium-sized enterprises’ s business performance and capital structure,and the effect according to the target capital structure.At the end of the paper,we puts forward some relevant policy recommendations in view of the research conclusion.