Vertical Dyads Differences Of Characteristics In Top Management Team, Enterprise Expansion Scale And Financial Distress

One of the most important resources for the development of a corporation is their top managers. it’s a reflection of a corporation soft power. The existence of top managers provides the motivation for the development and existence of a corporation. The strategic decisions executives making decide the fate of enterprises. Based on this consideration and through reading a large number of literature,we learn that if the feature of top managers is different,the strategic decisions enterprise making will also be different,and the size of the enterprise face financial risk is also different.Enterprise expansion is one of the important strategic decisions,and one of the inevitable path to an enterprise development is the expansion of enterprises. But under the environment of fierce compentition,if enterprises expand blindly,the possibility of enterprise traping in the financial distress will increase greatly.Based on this consideration,we ponder that whether the difference of the senior management team characteristics can affect the overall risk of bias,and thus making the possibility of corporating traping in the financial troubles different.Therefore,this paper studies the correlation between top managers team background characteristics difference,Enterprise expansion and the financial distress.Due to the influence of Confucian culture thought,people are more sensitive for authority in the listed companies in our country.And because of this thought, it’s necessary for considering factors of job level difference in examing top management team(TMT) background characteristics.Therefore, we study the difference of TMT background characteristic mainly based on the viewpoint of relations,namely”superior-subordinate” vertical characteristics of difference measure TMT background difference.But in our country,the board of directors have the decision-making power in business plans and the scheme in the investment of the enterprise merger.and the highest representative in the board of directors is the chairman,namely the “boss”.Therefore,this article studies the difference of TMT background characteristics mainly based on the vertical characteristic of “chairman-cxecutive”.In addition,we also find such a phenomenon by reading a lot of literature.it’s that a large study on financial distress is based on the external environment or internal governance structure. And the model made using study the impact on the financial difficulties directly from a management perspective are quite few.In fact, any decision enterprises making will affect all aspects of the enterprise.it’s people making enterprise traping in the financial distress.Thus, studying financial distress through top management(TMT) background characteristics difference directly will be significative,and it’s also a powerful supplement.At the same time,based on the difference of company property,its impact will be different.we will study these problems respectively from state-owned enterprises and non-state-owned enterprises. The first angle is directly from the perspective of TMT background characteristics,we’ll study its direct impact on the financial distress.the second angle is through how the TMT background characteristic difference influence the enterprise expansion of scale,thus indirectly further analyse how these differences influence the financial distress of enterprises.Through empirical analysis,we learned that the results between state-owned and non-state-owned are different.it will be meaningful for perfecting the corporate-governance theory, enforcing enterprise human resource management(HRM)and understanding China’s current enterprise expansion.