Post-charge Executive Characteristics Differences,Financing Preferences And Corporate Financial Performance

The academic research on the company’s financial performance can be said to be numerous,because it can best reflect whether the enterprise is doing well,whether it has development prospects,whether it is profitable or not.Company’s financial performance deserve it.However,few researchers have explored the influencing factors from the perspective of long-term performance of ST’s financial performance.This paper combines the recent research hotspots-“Zombie company”,puts the characteristics of executives into the ST companies’ situation under the Upper Echelons Theory.And studies the demographic characteristics,occupational characteristics,career experience characteristics,and military experience of the executives to ST’s companies short-term performance and long-term performance.Tentatively study the mediating role of financing preferences,that is,explore whether the characteristics of executives will be applied to the financial performance of the company through the financing preference.This paper first discusses the theoretical basis related to the topic,including Decision Theory and Principal-agent Theory.On the basis of theoretical analysis,the literatures in related fields are compiled,and the influence of various characteristics of executives on the financial performance of the company is reviewed.Through literature review,it is found that there are many studies on ST companies,but few researches from executives change and subsequent from feature differences to study ST companies,and few literatures have explored the factors affecting ST’s long-term performance.Therefore,this paper starts with the characteristics difference after the change of executives,studies the influence of different differences before and after the executive change on the financial performance of the company;and pays attention to the intermediate path of influence,that is,the intermediary role of financing preference.Based on the panel data of China’s A-share listed companies that have been ST but have returned to normal within 2006-2015,the empirical study of the impact of executive characteristics on ST’s financial performance,and also demonstrated the characteristics of executives to financing preferences and financing preferences to financial performance.The results of the study show that if the gender difference in the characteristics of the executives is that the changed executive gender is female,it can improve the company’s financial performance,thus helping the company to be revoked,but it is not significant for the company’s long-term performance;The age difference in the characteristics of the manager,that is,the changed executive age is greater than the pre-change executives,can help the company improve its financial performance,and thus be dismissed for special treatment,but its long-term performance is not significant,even after the cap removed two year of the negative effect;the characteristics of education background in senior management,that is,the changed executive education is higher than the pre-change academic qualification,which has a negative effect on the company’s financial performance,indicating that the academic qualification has no positive effect on the company’s short-term performance and long-term performance.For the company,the actual operational skills of the executives are more important;the difference in term,that is,the changed executives are longer than the pre-change executives,which can help the company improve its short-term financial performance and help the company be revoked for special treatment.And benefit the company’s long-term performance;Occupational difference,that is,the management of the executives after the change is management,market,law,etc.The former occupation of the former executives before the change is other or the same,and can not improve the short-term performance of the company,let the company remove the "hat" of ST.It is a negative effect.But also not conducive to the company’s long-term performance improvement;the difference in political experience,that is,the government level of the executives after the change is higher than the government level of the pre-change executives,can help the company improve short-term performance,remove the ST "hat" and can be used for the company’s long-term performance;the difference in military experience,that is,the changed executives have experience in the military,and the executives before the change do not have the experience of the military.It is not conducive to the improvement of the company’s short-term performance and is not conducive to the improvement of the company’s long-term performance;financial experience differences,that is,the financial institutions in which the senior executives are located are different from the financial institutions in which the former executives have changed.The impact on the short-term and long-term performance of the company is negative.This is different from the general understanding that the financial experience of the executives can help the company improve in short-term and long-term performance.In the empirical study of executive characteristics differences and financing preferences,after adding more variables that may affect financing preferences as control variables,we found differences in gender characteristics,tenture,occupational,political experience and military experience can have a significant effect on the company’s financing preferences.In the empirical study of financing preference on the company’s financial performance,although the impact of financing preference on the company’s financial performance is positive,it has not been significantly verified,and the mediating effect of financing preference is not significant.