The Influence Of Board Heterogeneity On The Performance Of Listed Companies

The board of directors as an important decision-making body in a company,its strategic direction choice and decision-making have an important influence on the sustainable development of the company's growth.The CEO as the company's core leader,he and the board of directors represent different interest groups,so he and the board of directors The size of power is bound to affect the board of directors.The theory of high-level echelon shows that the background characteristics of the senior management team will affect the team's way of thinking and decision-making behavior.The group decision-making theory shows that differences in individual characteristics will allow the entire team to have more extensive work experience,a broader perspective,and a more comprehensive knowledge structure system..In the past,most of the literature was about the characteristics of the board of directors or the influence of the heterogeneity of the senior management team on the performance of the company.There was not much research on whether board heterogeneity and company performance and whether the CEO's power would affect the relationship between the two.Therefore,based on the theory of high-level echelon theory and group decision theory,this paper discusses the influence of board heterogeneity on company performance and considers the moderating effect of CEO power.This article selects companies listed on the GEM before December 31,2013 as the research object.Select five ages,tenures,genders,education backgrounds,and occupational backgrounds.Select company size,company age,previous year's total asset profit rate,number of board members as control variables,and select ROA,ROE,and EPS as the main financial indicators.Component analysis obtained company performance,using CEO pay ratio as a controlling variable,and doing multivariate regression analysis found that board office heterogeneity was significantly negatively correlated with company performance;academic heterogeneity was significantly positively correlated with company performance;age heterogeneity and company performance.Positive U-shaped correlations,CEO structure powers all weaken the impact of heterogeneity and corporate performance.Finally,according to the research conclusions of this paper,we put forward opinions on the staff structure configuration of the board of directors as a reference for corporate governance,and pointed out the deficiencies and future research directions of this paper.