A Study On The Relationship Between Executive Quality And Enterprise Performance

Nowadays, with the fast development of the economic and highly competition,the survival and development of a company is challenged more than ever. In all, thestaff is the core of a company; the competition of the companies is the competition ofthe team. Senior executives, as the core of a company, play an important role in therunning of the business. The fact that the contribution from senior executives isagreed widely. Meanwhile, people put higher expectation on the senior executives.Based on the theory of Upper Echelons，through analysis, the author believes thatthe definition of senior executive capacity is: reflected by the statistical characteristics,on the senior executive team decision making process, the capacity that influences thecompany. In order to make the capacity of senior executive better understood, themethod of factor analysis is used. Based on the fact above, the article studies theinfluence of senior executive capacity through evidence based researches.New questions coming out are: in the background of Chinese market, is theinfluence of senior executive capacity to the company in state owned companies thesame to the privately operated ones? Are there differences between these twothemselves? In order to answer these two questions above, the author studies theinfluence of senior executive’s age, education, term of service to the company, anddraws a conclusion that:1. For state owned companies, there is a positive correlationbetween the age of the senior executive and the company profit. For privately ownedcompanies, there is a positive correlation too, but which is not significant.2. Forprivately owned companies, there is a positive correlation between the averageeducation level of the senior executives and the company profit.3. For privatelyowned companies, there is a positive correlation between the average term of serviceof the senior executive and company profit, but which is not significant.The result also answers the question above, there is a deference between theinfluences of the senior executive on the company profit between in the state ownedcompanies and the privately owned ones. For state owned companies, the influence ofthe senior executive is mainly reflected by the gaining of the resources. For privatelyowned companies, it is reflected by the adaption, renovation as well as teamworkcapacity.