The Influence Of Board Composition And Top Management Team Ownership Structure On Post-IPO Performance In Young Firms

With the development of economic globalization, corporate governance situation in various countries of the world have undergone extensive changes. For now, the company’s management structure and subsequent growth has become a domestic and international researchers and business common concern.More and more investors and corporate managers began to realize that good corporate governance is the key to strengthen the core competitiveness of enterprises and business performance, it is also the basis for the protection of company owners and other stakeholders staff. But excellent enterprise management relies heavily on good corporate governance structure. Thus stable mature enterprise management structure is very important to maintain good growth.Corporate is a complex economic system, its performance depends on a variety of factor influence. So it is not easy to reveal the relationship between growth and influencing factors among enterprises. Young listed companies usually have better performance among young enterprises, it can provide guidance and instructions to other young enterprises to analyze their performance and management.Now our young listed company’s growth management in the face of problems arise mainly in two aspects:First, the pros and cons of the board composition; the second is the impact of the ownership structure of the top management team. So this article will focus on young listed company, the impact of the board composition and ownership structure of the top management team on the performance of young post-IPO firms.From the traditional agency theory and resource dependence theory’s analyze to the composition of the top management team and the ownership structure of the board of young post-IPO companies make us believe that young listed firms, its board of directors is best composed of the original top management team (TMT) of the members, rather than an independent outsider. We believe that such board member holds the company’s valuable tacit knowledge and corporate vision, and can provide oversight in the best position.which can have a better performance in the management and decision-making. In addition, we believe that outsides should provide resources that firms’ TMTs might use to execute their strategies, rather than monitor the TMTs.The contribution of this paper:Through the study of effects of Upper Echelons theory of the top management team heterogeneity on IPO underpricing, I introduced CEO characteristics as moderation. Despite the emphasis on the modern enterprise, the executive team on explaining organizational performance is more effective than CEO. But CEO is not just a member of team, his role cannot be replaced by any other members. Therefore, when considering the characteristics of the top management team, research may need to consider the impact of the CEO. The results also indicated that marketing specialist CEO and Founder CEO are able to pass a better quality signal to potential investors.