Empirical Study On The Influence Of Senior Executives' Experience On The Performance Of Listed Companies In China

In the context of China's economic development and transformation,enterprises seek ways of enterprise development through a variety of channels,among which the phenomenon of establishing government-enterprise relations through senior executives' experience is very common.However,there has been no conclusion about whether the experience of senior executives can improve corporate performance.Starting from the resource dependence theory,social capital theory,rent-seeking theory,government intervention theory and other theories,the researchers draw different conclusions that there are positive correlation,negative correlation and other correlations between the relationship between government and enterprise and enterprise performance in Chinese enterprises.For the further research of the listed company executive experience as a different relationship with the enterprise performance,especially the influence of different nature of corporate equity of the relationship,in this article,through the database and manual collection by the Chinese in dual-listed companies experience as financial data and business executives,data covers the 10 years between 2007-2016 family of state-owned enterprises,state-owned enterprises,private enterprises and private ent erprises of the family of four companies.Using data regression analysis draws the following conclusions: first,the executive experience as the political ties to state,local state-owned enterprises,and the family enterprises performance improvement has the beneficial effects of private enterprises,including private enterprises performance increase faster,state-owned enterprises are easier to obtain special experience as executives,but experience as executives of performance enhancements to its degree of weak in private enterprises.Secondly,the experience of senior executives of Chinese enterprises involved in this paper mainly takes the form of representative senior executives' experience,government background senior executives' experience,social public welfare senior executives' experience and other forms.Different forms of senior management experience have different impacts on corporate performance.In contrast,senior executives with government background have the most significant influence on corporate performance.Third,the influence of senior executives' experience on performance is related to other financial indicators.The larger the shareholding ratio of the largest shareholder is,the more beneficial it is to enhance its control over the enterprise.The investment in senior executives' service experience will also be increased under its influence,and the enterprise performance will be significantly improved under this circumstance.The asset turnover rate is influenced by the experience of senior executives.The asset turnover rate of private enterprises is higher than that of some state-owned enterprises.For enterprises with higher asset turnover rate,the experience of senior executives plays a more significant role in promoting the performance.In terms of price-to-book ratio,the larger the price-to-book ratio is,the higher the trust level of enterprise performance will be in the market,and the experience of senior executives will increase the value of the price-to-book ratio.Therefore,the stronger the experience of senior executives is,the higher the trust level of the society will be.In view of the above conclusions,this paper puts forward corresponding policy Suggestions for enterprises and the government.First,enterprises s hould not learn to walk when they pursue senior management experience,but recognize the stage of enterprise development and the realistic needs of enterprises.Second,Enterprises should make efforts to improve their own capabilities and avoid correspondi ng risks in the process of using their senior executives' working experience,and should not rely on the working background of individual senior executives.Third,the government can more actively contact with private enterprises,promote the information communication between private enterprises and the government,and enjoy policy support.At the same time,the government should strictly abide by the bottom line and play a supporting role in the process of government-enterprise relations among various types of enterprises,and make it clear that excessive government-enterprise relations are not only unhelpful but also harmful to enterprises.