The Empirical Study On TMT Composition And Organizational Performance For Chinese Listed Companies

This paper focuses on the Top Management Team of Chinese listed companies, using secondary data disclosed by these companies, to explore how the TMT demographic composition, salary structure composition and social capital composition impact on organizational performance.In regards of the impact of TMTs'demographic composition as well as pay structure composition on organizational performance, we selected eight kinds of TMT composition variables and two types of financial performance variables, through the 327 listed companies (222 state-owned companies and 105 non-state-owned companies), regression analysis results showed that, there are significant effects between TMT team size, TMT average educational level, TMT functional heterogeneity and short-term financial performance of companies. TMT average age has significantly negative effect on long-term performance of companies. Based on the results, we selected two sub-samples—one state-owned companies sub-sample and one non-state-owned companies sub-sample, the regression results of the state-owned enterprises sub-sample showed that the proportion of state-owned shares plays an important moderating role between TMT heterogeneity, pay structure composition and organizational performance.In regards of the impact of TMTs'social capital network composition on organizational performance, we focus on the social capital structure of the Top Management Team, drawing on the Complex Network Theory and algorithms to take TMT community in the real-world to the topology network. We take TMT as a whole, exploring how the sum of the TMTs'social capital and the strength of TMTs'external contacts affect the financial activities. We selected three major financial indicators to reflect operating activities, investing activities and funding activities. The sample includes 145 state-owned listed companies, using content analysis method to quantify all the resume information of top managers. Regression analysis showed that the sum of TMTs'social capital and the strength of external contact significantly affect the operating and investing activities, but not significantly affect the funding activities.