Study On The Impact Of Senior Executives Characteristics On Business Performance In Food Industry

Food Industry is closely related to people's livelihood,which attracts much attention.At the present stage,the healthy development of the food industry also affects the quality of the all-round well-off society and the long-term development of the country.The industry has its own characteristics.As a perfectly competitive market,the homogenization of the product is serious and the competition is fierce.The constant pursuit of corporate has always been the good performance.As the most important corporate managers and decision makers,senior executives are significant to the corporate development and performance improvement.The relationship between executive characteristics and business performance has always been a hot topic among scholars and the results for different industries are different.This article takes the particularity of the food industry into account and in the light of the classification criteria of China Securities Regulatory Commission(CSRC).The selected public companies include agricultural and sideline products processing industry,food manufacturing industry,wine and beverage and refined tea manufacturing.And the paper investigates what features of the senior executives have an impact on the business performance and what impact it will have.This article selects food industry public companies that are listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange before 2012 which includes agricultural and sideline products processing industry,food manufacturing industry,wine and beverage and refined tea manufacturing.Removing the missing data and the special treatment,the final research sample are two hundred which includes forty companies.The senior executive characteristics include age,degree,wage and the female proportion and the control variables involve business scale,managers' size and cash coverage ratio and year.This article firstly combs a large number of domestic and foreign literature in order to grasp the current situation about domestic and foreign research on the impact of senior executive characteristics on the performance.Then it analyzes respectively the senior executive characteristics of the food industry and the financial performance on the basis of Human capital theory,Principal-agent Theory and Upper Echelons Theory in order to explain theoretical basis.Then it analyzes the current situation of executive characteristicsof food industry which found that the average age of executives is generally large,the educational background is higher,the average salary gap between executives is larger and male executives are dominant.Next,it describes the financial performance from solvency,profitability,operational capacity and development capacity.Lastly,the paper conducts the empirical research using multiple linear regression method with the help of Spss.Research indicates that the wage of the senior executive is positively correlated with the business performance;Women executives have a negative effect on the business performance.There is no obvious correlation between the senior executives' age and performance;There is no obvious correlation between the senior executives' degree and performance.According to the empirical research results,the paper proposes a lot of suggestion.The company should avoid attaching excessive importance to age and degree,improve the salary incentive system and optimize the gender structure of the senior executives in order to enhance business performance.