Research On The Relationship Between Top Management Team Background Characteristics,Real Estate Investment And Business Performance Of Listed Companies

With the rapid growth of housing prices,many non-real estate companies invest in real estate for business,investment or other purposes since the reform of China's housing policy in 1998.And they have benefited from the continued rise in the prices of buildings and land.The real estate investment of the enterprise under the limited resources will inevitably affect its production and operation performance.According to the upper echelons theory,the characteristics of the manager's population background have an important influence on their behavior.As the highest strategic decision-making and resource allocation subject of the company,the top management team's group background characteristics(gender proportion,average education level,etc.)determines whether the company invests in real estate as well as capital investment level and investment quality to a certain extent,thus affecting the business performance of the enterprise.What is the relationship between the executives' background characteristics,real estate investment and business performance? In addition,due to differences in the context of property rights,the objective environment and the goals of the top management team of the state-owned and non-state-owned companies will be different.Then is there any difference in the research conclusions of the above issues for enterprises with different property backgrounds? The in-depth study of these issues clearly has important practical value.This paper first sorts out the relevant domestic and foreign literatures on executive background characteristics,behavior selection and corporate performance as well as corporate real estate investment behavior.Secondly,based on principal-agent theory,upper echelon theory and multi-theory integration model,this paper makes a theoretical analysis of the correlation between executive background characteristics,real estate investment and business performance,and puts forward empirical research hypotheses.Finally,this paper uses the relevant data from 2007 to 2016 of Shanghai and Shenzhen A-share listed companies to conduct empirical analysis.First a panel Logit model is built to examine the relationship between executives' background characteristics and corporate real estate investment behavior;further,a panel multiple regression model was created to test the influence of corporate real estate investment behavior and senior executive background characteristics on the business performance of the company.And on that basis,this study examines the moderating effect of executives' background characteristics on the relationship between real estate investment and business performance.The main results of the study indicate:(1)There is a significant correlation between the background characteristics of senior executives and corporate real estate investment behavior;(2)Real estate investment is not conducive to the improvement of corporate operating performance.The proportion of male executives,average age and average education level in the background characteristics of senior executives have a significant negative effect on business performance;average tenure has a significant positive effect on business performance;political context and financial context have a positive effect on the business performance of a company,but this effect is not significant;(3)The proportion of male senior executives and the average tenure in the background characteristics of senior executives have a significant positive moderating effect on the relationship between real estate investment and business performance.The political context have a significant negative moderating effect on the relationship between the two aspects.The average educational level and the financial context have a negative moderating effect on the relationship between the two.In addition,the average age has no moderating effect on the relationship between the two;(4)Enterprises with different property backgrounds have certain differences in the above research conclusions.Therefore,enterprises should pay attention to the selection of senior management personnel,rationally construct and optimize the top management team,and improve the investment decision-making quality and management level of enterprises;When enterprises make real estate investment decisions,they should not only paying attention to the trend of asset prices and macro-control policies but also fully understand their own financial status and main business competitiveness,so that they would avoid blind real estate investment behaviors,and maintain the healthy and sustainable development of the company.