Research On The Relationship Between Top Management Team Fault And Enterprise Performance

The main work of senior managers in enterprises is to be responsible for the operation and management of the overall macro direction of the company.They also have important information about the company.It can be said that senior managers play a vital role in the management and decision-making of listed companies.But with the advent of the Second Industrial Revolution,the ownership of traditional enterprises is separated from that of the managers who are actually in operation and management,which leads to a thorny practical problem,that is,the interests of senior managers and shareholders conflict with each other.By establishing a logical salary system for senior managers,listed companies can weaken the contradiction to a certain extent,and make senior managers redouble their efforts for the company to achieve better business performance.Therefore,based on the study of fault line and corporate performance,it is of great theoretical and practical significance to explore the executive compensation of Listed Companies in China.From the point of view of previous research literature,the relationship between executive team and corporate performance is mostly focused on the impact of demographic,team diversity and other single characteristics,and mostly is a one-way linear study,but few quantitative studies involve the impact of executive compensation changes.Therefore,this paper aims to draw effective conclusions by studying the two-way relationship between executive fault and corporate performance and the regulatory role of executive compensation.Taking 3665 A-share listed companies in China from 2016 to 2018 as samples,this paper explores the relationship between Top Management Team Fault and corporate performance and the impact of executive compensation on the relationship between TMT Fault lines and corporate performance.The results of data analysis show that there are differences in the relationship between executive fault line and firm performance,in which task-related fault line related to academic background and tenure shows an image relationship of quadratic parabolic curve with open-ended downward,while social classification fault line related to gender and age shows an open-ended upward relationship with firm performance image relations of quadratic parabolic curves.Data analysis also shows that executive compensation can positively regulate the relationship between the two types of fault lines and corporate performance,strengthening the positive effect of task-related fault lines and the negative impact of social classification fault lines respectively.This study has important referencesignificance for sorting out the compensation resources and system of top management team and deepening the related theoretical research in the future.