The Influence Of The Top Management Team Heterogeneity And Inefficient Investment Research On Chinese Manufacturing Listed Companies

The investment behavior of the enterprises has always been an important part for the enterprise development;however,the recent studies have found that due to the issues such as agency by agreement,it is quite difficult for the marketing enterprises to make the optimal investment decisions and the phenomenon of inefficient investment is very common in the business operation of the enterprises.How to improve the investment efficiency of the enterprises is the emphasis of the academic circles.The top management team(TMT)is one of the competitive powers of enterprises,therefore,when studying on the investment efficiency of the enterprises,the role of the TMT should never be neglected,and it is also one-sided to view the TMT as homogeneous.This paper first reviews the relevant literatures and then put forwards the topic will be discussed in this paper.On the basis of the upper echelons theory and principal-agent theory,this paper discusses the action mechanism of the TMT’s heterogeneity on the inefficient investment and proposes the hypothesis.Also,the relevant data of the manufacturing-listed enterprises in the A share market and the aspects of over-capitalization and under-capitalization are studied.With the descriptive statistics method and multiple regression analysis method,the influence of the background heterogeneity of the TMT in manufacturing enterprises of our country over over-capitalization and under-capitalization is investigated.The study indicates that the low investment efficiency is a common phenomenon in the manufacturing enterprises,compared with under-capitalization,the overcapitalization is less universal but more severe.The greater the heterogeneity of tenure is in the TWT,the more unified the understanding of the enterp rises are,and this would aggravate the occurrence probability of over-capitalization and undercapitalization.While a TWT with great the heterogeneity of occupation could provide the team with more diversified perspectives,and this would effectively con trol the over-capitalization and under-capitalization of an enterprise.As the number of female executives increasing and their speaking right expanding,their cautious decision-making idea has aggravated the phenomenon of under-capitalization.In the meanwhile,based on china’s national situation,this paper divides the studying objects into state holding enterprises and non-state controlled enterprises.Through the comparison between these two different types of enterprises,it can be found that the difference between members of TMT in non-state controlled enterprises have a more obvious influence on the inefficient investment.From the perspective form the background feature heterogeneity of TMT,this paper studies the governance mechanism of the inefficient investment is studied,and some suggestions are proposed to help the enterprises to reduce inefficient investment form the source of managers.