Study On The Top Management Characteristics And Interactions On Company Growth

Company growth is a common concern of stakeholders,is the source of sustainable development and value maximization.Company development in SME board,as the important part of our national economy,meets to the increasingly diversified,personalized market demand.The number of company in SME board is 786 in May 2016,and the total market value is ?8.47 trillion,it accounts for 20% of the market capitalization of Shenzhen and Shanghai.So it plays an important role in creating jobs,invigorating the market,stimulating competition and promoting the process of industrialization,and the growth of SMEs has become the focus of attention.Top management,as the master of enterprise management decision-making power,has become a key resource for the company to achieve sustainable competitive advantage,and how to allocate the key resource will directly affect the healthy development of the company.Therefore,study on the growth of companies in SME board,analyze the relationship between top management characteristics and company growth,will give a great significance to the sustainable growth of SMEs in the face of adversity.This paper studies the relationship between top management characteristics and the growth of company.Firstly,it introduces the background and significance,the status of research,research methods and research framework of the article.On this foundation,it defines the scope and characteristics of the top management,including the age,education,tenure,salary incentive and equity incentive.Secondly,it selects five financial indicators,using factor analysis of the composite index to reflect the growth of company.Thirdly,according to the upper-echelons theory,it puts forward the hypothesis of this paper.Finally,in 2013-2015,the Shenzhen A shares SMEs data as the study sample,using regression analysis method,empirical studies on the relationship between top management characteristics and the growth of company,and based on the results and SMEs qualities gives countermeasures and suggestions to improve the company growth.The empirical results show that: the age characteristics of top management and the growth of company is negatively related.The senior,tenure,salary incentive,executive incentive and the growth of company are positively related.There are significant interactions between age and equity incentive,senior and salary incentive,tenure and equity incentive,and interactions effect have significant effect on the growth of company.This shows that the impact of top management characteristics on the growth of company is not isolated,is interrelated.