Chairman's Government Background,Tenure And Corporate Performance In The State Holding Listed Company

Under the background of the deepening of the reform of the state-owned enterprises,the management and performance of the state-owned enterprises have attracted more and more attention.In order to establish a more reasonable modern enterprise system and a hierarchical management system for the leaders of state-owned enterprises in 2020,experts and scholars have been discussing and studying related topics.After the separation of ownership and management,the theory of principal-agent began to come into being and the traditional principal-agent theory can explain the agency problem between a part of the owner and the manager.But with the continuous development of economy and the enrichment of theory,the traditional principal-agent theory can not explain how executives' subjective consciousness affects corporate decisions.The high-rise echelon theory puts forward that psychological characteristics of executives' personal preferences and cognitive abilities can be measured by demographic characteristics such as age,gender,tenure and educational background.To a certain extent,the theory can explain the impact of executive psychological characteristics on the decision-making behavior of the management,thus affecting the performance of the company.These two theories can provide theoretical support for this study.In addition,state-owned enterprises are the lifeblood of China's economy,especially those of state holding enterprises.The decisions made by its chairman as the top leader of a company have a significant impact on company performance.Therefore,it is of certain practical and theoretical significance to study the government background,tenure and corporate performance of the chairman of the state holding listed company.In this paper,947 A-share holding listed companies in Shanghai and Shenzhen from year 2004-2016 is used as the research sample.Collecting the financial data and the chairman's background characteristics from CSMAR database,Wind database and Cninf.Our research is divided into three levels.On the first level,the study of the relationship between the chairman's government background and the corporate performance.The second level is to study the relationship between the term of chairman and the performance of the State-owned listed companies.The third level,we use group regression to study the relationship between the tenure and the company performance when the sample is divided into two groups:government background and non-government background.Through the introduction of the method of interaction,it is necessary to examine whether the chairman's government background plays a regulatory role in the relationship between the tenure and corporate performance.The results of this study show that the chairman of the state-owned listed companies with government background is positively correlated with company performance,and the chairman of the tenure and corporate performance is also positively related,which explains the chairman of a government background can promote the growth of corporate performance,so the longer the tenure,the better the corporate performance.In addition,the group test results show that when the chairman has a government background,the length of tenure does not affect the corporate performance,and when the chairman has no government background,The longer the term,the more conducive to the performance of the company.It is also found that the chairman has a negative regulatory role in the relationship between the tenure and the corporate performance.