Characteristics Of The Top Management Team?Salary Incentive And Enterprises' Inefficient Investment

As the largest emerging market and transition economies,the economy of China achieved continuous high growth from the "high savings" to "high investment" since the implementation of reform and opening up policy.But the attendant is the excess capacity,duplication and waste of resources and other forms of low efficiency investment.And nearly 40 years has not been an effective solution,which has plagued China's sustained and healthy economic development bottlenecks.The reason for the inefficient investment in enterprises may be multifaceted.Some direct causes such as corporate governance is not in place,the institutional environment is not perfect,too much government intervention has been verified by the academic community.But these studies are basically focused on the relationship between corporate governance and investment efficiency,while ignoring the functions of top management team who play an important role in corporate governance.This paper revolves around the "soft element",the characteristics of top management team,discussing its relationship with the efficiency of enterprise investment,and the role of salary incentive in this mechanism.And according to the results of this study,put forward some suggestions,hoping for providing some valuable references in the selection of top management team for modern enterprises.This paper mainly adopts the method of combining qualitative and quantitative,normative research and empirical research.In the normative research stage,this paper sorts out and summarizes the current domestic and foreign literatures of the investment efficiency,top management team characteristics and salary incentives.On the basis of reading these literatures,this paper uses the method of combining logical deduction with literature evidence to determine the basic model which is suitable for the research content of this paper,and analyzes the relationship between four characteristics and the enterprises' investment efficiency,including age,education level,tenure and gender,and the adjustment effect of the salary incentive between top management team characteristics and the investment efficiency of the enterprises,and analyzes the different situations with different property rights in China.In the next empirical analysis stage,this paper carries on the statistical analysis first,clarifies the basic situation between the inefficient investment and the top management team characteristics of our country A shares listed company in the past five years,then uses this data to carry on the empirical test and the robustness test,confirms the Hypothesis of this article.The results of this study show that the background characteristics of top management team significantly affect the investment efficiency of the enterprises.It is shown that there is a U-type relationship between the age and the inefficient investment of the enterprise,so does the tenure.And there is a negative correlation between the education level and ineffective investment,so does the proportion of female executives in the top management team.At the same time,salary incentives can curb the relationship between the education and tenure and inefficient investment.This paper is divided into seven parts,the main research content is as follows:The first part is the introduction.This paper mainly elaborates the research background and significance of this paper,the research method,the structural arrangement of the article and the innovation of the thesis.The second part is the literature review.Firstly,the literatures about inefficient investment,top management characteristics and salary incentive are reviewed respectively.Secondly,the literatures related to the top management team characteristics and inefficient investment is studied.Finally,the literature review is given.The third part is about related theories.First of all,defined several variables involved in this article according to the previous literature,and then introduced with the study of the three theories:Upper Echelons Theory,Principal-agent theory,Incentive theory.The fourth part is theoretical analysis and hypothesis.Put forward the hypothesis of this study by comprehensively analyzing and applying of the third part,through the literature and logical deduction of the method.The fifth part is research design.Mainly on the data sources,sample selection,variable definition and model design.The sixth part is empirical analysis and robustness test.It mainly introduces the sample data descriptive statistics,correlation analysis,regression analysis and robustness test.In this process,it mainly discussed the impact each top management characteristic of inefficient investment in enterprises,and distinguish between different properties of different nature of the enterprise.And then by changing the dependent variable measurement method to further prove the conclusion,so as to the seventh part of the proposed more accurate and effective recommendations.The seventh part is the research conclusion,the related suggestion,the insufficiency and the prospect.Based on the results of this study,you can provide companies with some advice on how to recruit top management team and how to raise the function of salary incentive for top management team.There are two aspects of innovation in this paper:First,it analyzes the influence of the invisible soft factor on the inefficient investment of the enterprise,and enriches the research on the top management team characteristics and the inefficient investment of the enterprise.Second,it takes into account the corporate governance element on the top management team characteristics and the inefficient investment,and adds the salary incentive to the study.Finally,the impact of the top management team characteristics and inefficient investment mechanism is more explanatory,research perspective is also more innovative.