Research On The Relationship Between Executives’ Military Experience And Fluctuations In Business Performance

Military experience is becoming a key focus of scholarly research as an important individual context.The life experience and environment during this period can have a significant impact on the shaping of individual values and the development of skills,and profoundly change the risk appetite and decision-making behavior of business managers.Veterans are an important force in driving the development of nation-building,and the Party Central Committee has placed emphasis on improving the level of protection for veterans and continuously improving the management and protection system.After several disarmament exercises since the founding of New China,many outstanding ex-servicemen have joined the business sector and played a key role in modern corporate governance.In addition to static financial performance,maintaining the robustness of business performance is more conducive to sustainable development and helps to truly increase the value of a company from a longterm perspective.At the same time,corporate development is inevitably constrained by the external environment in which it operates,with the chairman having greater control over the disposition of resources and executives having too much power,which may lead to a failure of the power monitoring system.Therefore,it is worthwhile to explore in depth how executives’ military experience affects business performance fluctuation,and also to consider whether the relationship between the two is constrained by the power of the chairman and the uncertainty of the environment.This paper combines the current situation of domestic and international research,based on theories such as Principal-agent Theory,Upper Echelons Theory,Imprinting Theory and Management Power Theory,and after processing data of China’s listed A-share enterprises in Shanghai and Shenzhen from 2012 to 2021,adopts a multiple linear regression method to study in depth the horizontal and vertical fluctuations of executives’ military experience on the business performance of enterprises from the full sample and under the nature of sub-property rights respectively The results of the empirical analysis are as follows Based on the results of the empirical analysis,the following conclusions were obtained:(1)There is a significant inhibitory effect of executives’ military experience on both horizontal and vertical fluctuations in firm business performance.There are differences among firms with different property rights,and this effect is particularly significant in private firms compared with state-owned firms.(2)Chairman’s power significantly weakens the inhibitory effect of executive military experience on the vertical fluctuation of business performance,but does not affect the relationship between executive military experience and horizontal fluctuation of business performance.(3)The stronger the uncertainty of the environment in which the firm is located,the stronger the inhibitory effect of executive military experience on the horizontal fluctuation of business performance,and the weaker the inhibitory effect on the vertical fluctuation of business performance.Combining the findings of the study,this paper provides new references on the selection and hiring of executives by listed companies,the reduction of business risks by companies and the optimal placement of veterans by the government from the perspectives of both companies and the government.