Corporate Governance, Top Management Team Heterogeneity And Corporate Performance

Over the years, most of our business emphasize significant short-term behavior and ignore the long-term development of enterprises, resulting instability in corporate performance, weak ability to resist risks. With the introduction of modern enterprise system and development of our business,people is growing recognition that corporate governance structure on firm performance in an important role. An effective governance structure can be incentives, such as board governance, and improving long-lasting performance. Under intense changes in the environment, top management team in corporate governance increasingly important role in the enterprise. the senior managers should handle numerous message and strategic decisions everyday ,so companies taking top management team's way to govern the company can help companies adapt to a development environment.In this paper, southwest China's 120 listed companies as samples, we used statistical software SPSS17.0 to analyse the level of its corporate governance and company performance, top management team heterogeneity and firm performance of the relevant empirical analysis to study the corporate in Southwest China performance of the company's real factors affecting the company, so as to improve the corporate Southwest China performance to the more reasonable suggestions.In this paper, corporate governance, top management team heterogeneity in terms of whether firm characteristics affect the company's performance, its intrinsic relationship between the existence of a link. This article first from the angle of corporate governance, corporate performance linear analysis, regression results show that companies in southwest China's governance structure and corporate performance have a significant correlation, including the first shareholding ratio,the ratio of the in ten shareholders stake, the proportion of independent directors and company performance is related to the part-time chairman and CEO, and a negative correlation between firm performance. Top management team in the study, we found that TMT age, tenure, and education heterogeneity showed statistically significant and negative corporate performance relationship. However, heterogeneity of professional experience showed statistically positive correlation with firm performance, indicating that the characteristics of firm and corporate performance have a significant correlation. Finally, we integrated joint action of corporate governance and top management team heterogeneity,and we found southwest companies of the corporate governance and top management team heterogeneity have the linear relationship between corporate performance, this results is the same as the hypothesis. It can be seen southwest of companies listed characteristics significantly affect the company's performance. Given the above empirical results, we think under the West Development that companies in southwest China build efficient management team, not noly consider the personal ability of executives, but also to be more focused on diversity among members in top management team, and build more reasonable and more effective top management team, thereby increasing the corporate performance. Hope for this aticle will provide a more rational basis for decision making, and improve the performance of enterprises in Southwest China in future.