Military CEOs And Company Decision-makings

In the field of psychology,behavioristics and other social sciences,a large number of research results show that a person’s early life experience,especially with some distinctive features,to the individual left a deep memory experience,will significantly affect their late personal traits,as well as behavioral decisions.At the same time,the Top Management Team(TMT)theory shows that executives’ decision-making functions are stronger,and largely determine the overall development strategy and performance of the firm.Since the 21 st century,the research on the influence of executive characteristics on corporate policy has been paid more and more attention by academics.Most of them are rooted in the influence of executives’ personal traits on corporate decision-making.For example,the individual’s gender,tenure,educational level and so on.How the characteristics affect the impact of business decision-making,but less pay attention to the relationship of between the early life of executive experience and their management style.Based on the Propensity Score Matching method(PSM),this paper makes use of the research method of theoretical analysis and empirical test,studies the influence of the military experience on the decision of the CEO and the company from the perspective of the early life experience,the personal behavior preference and the decision making.This paper makes meaningful additions on the literature of between the individual characteristics of executives and the impact of corporate governance research.At the same time,this paper finds that the difference of property rights of listed companies in our country has different influence on the relationship between military CEO and company decision.In the process of empirical analysis,based on the theoretical interpretation of the military experience and the high-order theory,this paper uses the A-share companies listed on the Shanghai and Shenzhen Stock Exchange as the research object,and selects the public data of A-share listed companies from 2004 to 2015 as the initial research Sample,make an empirical test of the military experience on the CEO and the impact of corporate decision-making effect.The results show that:(1)relative to non-military CEO,the military CEO have overconfidence based on risk-oriented perspective,the military CEO of the company’s investment and mergers and acquisitions have a positive correlation,(2)military life makes the military has a strong sense of honor,responsibility and discipline of the code of conduct,so relative to the ethical-oriented perspective,relative to non-military CEO,the military CEO in the company.There were fewer irregularities and unqualified auditors in the governance process.This paper argues that in examining the influence of executives’ personal characteristics on corporate decision-making,we should consider the composition of executive characteristics from various aspects.In this paper,the CEO’s experience is the research point,which enriches the research field of the influence of executive characteristics on corporate decision-making,and has the following contributions in this field:(1)In the research method,this paper adopts the Propensity Score Matching method(PSM),the combination of the experimental group and the control group,eliminating the confusion of other variables,to ensure that the CEO’s experience as an independent variable reliability,accurate and independent measurement of the military experience of the decision-making impact;(2)In this paper,the empirical research method,to a certain extent,enriched the domestic executive characteristics affect the company’s decision-making research areas from the investment,merger,illegal and audit four aspects.