Research On The Demographic Characteristics Of Top Management Team And Financial Performance Of Insurance Company

Inrecentyears,China'soveralldomesticeconomicgrowthphase hasgraduallyshifted from high-speed to high-qualitydevelopment stage.As an importantpartofthe modern socialeconomy,the insuranceindustryhasdevelopedrapidlyinrecentyears.Accordingto theguidelinesofthegovernment13th‘Five-year Pan',theinsurancel industryactivelyimplementsthestrategyofestablishingacontingentof managerialpersonnelqualified forthe developmentofnew stage.Therefore,underthebackground ofcurrenteconomicdevelopment situation,theauthorattemptstoexplorethefinancialperformanceof China's insurance companies based on the demographic characteristicsoftopmanagementteams(TMT),intendingtoattribute tothefuturedevelopmentof China's Tlent Srategyintheinsurancea t industry.The main contents of this paper are:Firstly,whether the demographiccharacteristicsoftopmanagementteamscouldinfluence thefinancialperformanceofinsurancecompanies;secondly,explore the detailed transmission mechanism between the demographic characteristicsof TMT and firm financialperformance,in orderto achievetheoptimaldevelopmentpathofinsurancecompanies.This papercombinesthenormativemethodandempiricalanalysismethod,explaining the core concepts and exploring the demographic characteristicsofthetopmanagementteam basedonthetheoretical basisandrelatedhistoricaldocuments.Asfortheempiricalanalysispart,thispapertakesfour China'slistedinsurancecompaniesasresearch objects,selectingage,genderandeducationbackgroundasthemain proxyvariablesofdemographiccharacteristics.Besides,thispaperalso takesbankingindustryaswellassecuritiesindustryassupplementaryPerformanceof Isurance Cn ompany research objects,intending to achieve comparative analysis with insuranceindustry.Accordingtotheempiricalanalysisresults,themainconclusionsof thispaperareasfollow:Firstly,intermsoftherelationshipbetweenagecharacteristicsof top management team and financialperformance of insurance companies,thefinancialperformanceissignificantlypositiverelatedto theaverageageoftopmanagementteam.Andthisconclusioncould also beapplied to thebanking,securitiesand financialindustryfull samplemodel.Besides,thetopmanagementteam ageheterogeneity characteristicsandfinancialperformanceofinsurancecompanieswas foundsignificantlynegativelycorrelated,whichisconsistentwithsocial identitybutmaynotbesupportedinthebankingsubsamplesduetothe differentagestructurepreferencesofthetopthreemanagementteams indifferentindustry.Intheshortterm,insurancecompaniesshould makefulluseoftheconsistencyoftheirseniormanagementteam in thinkingmodeandsocialresourcesutilization.Inthelongrun,however,insurance companies may also consider the construction of managementteam with more young executives,in orderto drive business innovation and better dealwith the business changes nowadays.Secondly,intermsoftherelationshipbetweenthetopmanagement teams' gendercharacteristics and the financialperformance of insurancecompanies.Becausetheproportionoffemaleexecutivesin thetopmanagementteam oflistedinsurancecompaniesistoolow,itis difficult to highlight the management characteristics of female executivesonthecompany'sfinancialperformance.Therefore,thereis nosignificantrelationshipbetweenthegenderhomogeneityandthe company'sfinancialperformancebeenfound,whichisconsistentwith theoverallsituationofthefinancialindustry,andalsosupportedbythe securitiesindustrysample.However,thegenderheterogeneityofthe topmanagementteam oflistedinsurancecompaniesisfoundpositively correlatedtofirm financialperformance.Thisconclusionisconsistentwiththeresultofsecuritiesindustrybutnotinthebankingindustry.Insurance companies should consider appropriately adding more femaleexecutivestotheirtopmanagementteam.Ontheonehand,it canadjustthecurrentimbalanceofgenderimbalanceinthecurrent seniormanagementteam.Ontheotherhand,itcouldencouragefemale executivestofullydemonstratetheirmanagerialqualitiesandtherefore improvetheentirefirm decision-makingquality.Thirdly,intermsoftherelationshipbetweenthetopmanagement team's educationalbackground and the financialperformance of insurance companies,insurance companies which have top managementteam memberswith highereducationallevelstend to achievebetterfinancialperformance.However,becauseofthedifferent educationbackgroundstructureoftopmanagementteam indifferent industries,theresearchconclusionhasfailedtodetecttherelationshipin banking,securities and entire financialindustries.Additionally,the relationshipbetweentheeducationalheterogeneityoftopmanagement team andthefinancialperformanceofinsurancecompaniesdidnot pass the significanttest.This conclusion is consistentwith the conclusionofthebanking sub-samplemodel.Insurancecompanies should continue keeping theirhighly educated talentin theirtop managementteam,increasing the degreeofattentionto insurance professionalsandbuildingahigh-qualitytopmanagementteam with highlyinnovationandknowledgebasis.Themaininnovationofthispaperislistedasfollow:Firstly,thispaperattemptstoexplorethefinancialperformanceof insurancecompaniesbasedonthedemographiccharacteristicsoftop managementteam.Theexistingresearchesabouttopmanagement team andcorporateperformancemainlyfocusonthedesignofthe corporatesystem.Andthereisnospecificresearchfocusingonthe insuranceindustry.Thispapersystematicallyanalyzesthehomogeneity aswellasheterogeneitycharacteristicsoftopmanagementteam of China'slistedinsurancecompanies,attemptingtoprovidenew ideas fortheexplorationoffinancialperformanceofinsurancecompanies.Secondly,this paper uses classified models to explore the relationship between the demographics characteristics ofdifferent categoriesoftopmanagementteamsandthefinancialperformanceof thelistedinsurancecompanies.Thispaperselectsfourlistedcompanies in China'sinsuranceindustryasresearchsamples.Throughdescriptive statisticalanalysisaswellasstatisticalmodelinganalysis,thispaper exploresthemaincharacteristicsanddevelopmenttrendofthetop managementteam in China'sinsurancelistedinsurancecompanies.At the same time,itestablishestwo classified modelsto explore the relationship between financialperformance ofinsurance companies andthehomogeneityaswellasheterogeneitycharacteristicsoftheir topmanagementteam.Thirdly,this paper establishes the framework of horizontal comparative analysisoffinancialsub-industry on the basisofthe relationship between the demographic characteristics of top managementteam andfirm financialperformance.Inthispaper,the comparative analysismethod wasused to selectthe banking and securitiesindustryoverthesameperiodasasupplementarysample.Thispaperbuildsahorizontalcomparativeanalysisframeworkfocusing ontherelationship betweenthedemographiccharacteristicsoftop managementteam andfirm financialperformance,whichisconsidered havingitsowncharacteristicsintermsofresearchideasandresearch depth,andalsoprovidesreferencesforthediscussionoftheinternal differencesinthefinancialindustryinrelevantresearchfields.