Research On Correlation Between Executives Characteristics And Corporate Performance

In the new era of China’s economic transformation, with the support of national policy, the high-tech enterprises have developed rapidly, the high-tech exists in various industries and areas of the socio-economic, which plays an important role in the establishment of an innovation-oriented country. The high-tech enterprises are an intensive economy of the talent, knowledge and high technology, but human resource is the most impetus for development of the company. As the company’s business decision-makers, executives are the company’s main human resources. The article conduct an empirical study to explain how the relationship between the characteristics of executives and corporate performance is and find out which features factors affect business performance.The paper selected high-tech enterprises from Shanghai stock as the object of study, collected the required data by RESSET database and handwork, finally achieved three years consecutive data from2009to2011, and screened a total of582observations. The paper exploits the higher order theories, the principal-agent theory, the property rights theory to expound the relationship between executives’ own characteristics separately, incentives, internal corporate governance mechanisms and corporate performance. Then the paper analyses the status quo of the current stage from the high-tech enterprises in China, executives and corporate performance. On this basis, the paper selects executives’ characteristics, incentives characteristics, internal constraints characteristics in order to do a empirical research of correlation between executives’ characteristics and enterprise performance. The measure of executives’ characteristics select five indicators as the explanatory variable:academic levels, job title, average tenure, average age and government background; incentive features select two indicators as the explanatory variable: monetary remuneration and shareholding ratio; the measure of internal company constraint feature select three indicators as control variables:the proportion of state-owned shares, the proportion of independent directors, and two part-time. In addition, the paper adds four indicators as control variables:lives of the company’s establishment, asset size, debt situation and industry. The paper uses SPSS17.0software, establishes a multiple linear regression model, and obtains the important conclusion by each variable’s descriptive analysis, correlation analysis and regression analysis.In executives’ characteristics of high-tech enterprises, the four indicators of academic levels, the age, government background and monetary remuneration showed a significant correlation with corporate performance, job title, shareholding ratio and corporate performance are positively correlated, but not significantly, tenure showed a weak negative correlation with corporate performance; In incentives feature of executives, whether monetary remuneration or shareholding ratio have a positive correlation with corporate performance, just monetary remuneration more significant; In internal constraints feature of executives, the proportion of independent directors and two part-time have a reverse role for corporate performance.Finally, according to the results of empirical research and the actual situation, the paper targeted to proposed policy recommendations, and described the inadequacies of the research.