Top Management Team Educational Background,internal Control And Corporate Performance

The pursuit of excellent performance is the basic goal of the company's development,which is also affected by the top management team and internal control.However,in recent years,the emergence of a series of stock market black swan events and the disclosure of financial fraud cases reveal that there are still major deficiencies in the internal control of listed companies in China,and the direct consequences of these series of events have also led to frequent changes of top management team.Among all the personal characteristics that affect the top management team's decision-making style,the educational background will directly affect the manager's values and codes of conduct.Therefore,it is of great significance to examine the specific impact of the top management team's educational background and internal control quality on company performance.The article is based on upper echelons theory,human capital theory,and principal-agent theory,and collate and analyze a large number of relevant literature,then proposes research hypotheses and related models.And discusses the relationship between the top management team's educational background,internal control,arid corporate performance.In order to build an intelligent modern management team of the enterprise,implement the strategy of strengthening the country with talents,and study the importance of the educational background of the top management team to the development of the company.The article selects the educational background in the personal characteristics of the top management team as the foothold,and studies its impact to internal control and corporate performance;And the article will further elaborate the indicators describing the educational background of the top management team,divided into three levels for the average levels of education degree of the top management team,the background of studying abroad and the background of famous schools,and study the impact of these three indicators on internal control and corporate performance;Moreover,the article puts the educational background of the top management team,internal control and corporate performance into a theoretical research framework,to examine the impact of the educational background of the of the top management team on internal control and corporate performance.And uses internal control as an intermediary variable,to explore internal control's role played between the top management team's educational background affects the company's performance path.The article specifically uses the data of A-share listed companies in Shanghai and Shenzhen as a sample from 2008 to 2018.After screening and sorting,1430 companies were selected,with a total of 7650 observations.And empirical tests were conducted according to the steps of the intermediary effect test.The research conclusions are as follows:(1)Corporate performance is positively correlated with the educational background of the top management team,That is,the higher the average educational background of the corporate top management team,the better the background of studying abroad and the background of prestigious schools,the better the corporate performance.(2)The corporate internal control level is positively related to the educational background of the top management team.That is,the higher the average acadmic qualifications of the corporate top management team,the better the background of studying abroad and the background of prestigious schools,the better the quality of the corporate internal control.(3)The quality of internal control is significantly positively correlated with corporate performance.That is,the better the corporate internal control quality,the better the corporate performance.(4)Internal control plays an intermediary role between the educational background of the top management team and the corporate performance.That is,the educational background of the top management team affects the corporate performance by partially affecting the quality of internal control.At the end of the article,there are some management suggestions for China's listed companies:Companies should be committed to forming a high-level modern top management team,perfect the corporate own internal control quality while playing to the leading role of the top management team,and finally promote enterprises to achieve advanced knowledge sharing.