Research On The Impact Of Heterogeneity Of CEO And Other Members Of Top Management Team On Firm Performance

With the acceleration of China's opening pace,the market environment for enterprises is changing,and the degree of competition is becoming more complex and changeable.Enterprises have begun to pay attention to the importance of the executive team,which is a decision-making unit with complementary knowledge,skills,information and expertise.But how to build an executive team that shares knowledge information and complements their skills expertise,the behavioral integration of the executive team is very important.The two most important factors in the behavioral integration of the executive team are the CEO and team structure.As a group with greater power and greater influence,the CEO has a direct and significant impact on the behavioral integration of top management team(TMT).The team structure formed by the CEO and other members is also affected by the CEO.The research of CEO and other members become the entry point of this article.The article takes China's 2009-2016 Shanghai-Shenzhen A-share listed companies as the research object.This paper uses high-order theory,behavioral integration theory,social identity theory and information decision theory to empirically examine the impact of the difference between CEO and other members of the executive team on corporate performance.It has practical significance for the enterprise to build a reasonable executive team structure.In addition,this paper discusses the differences between heterogeneity and firm performance in different industries.The results show that the heterogeneity of the education level between CEO and other members is negatively correlated with the short-term innovation investment of the company;the age,education level and gender heterogeneity of CEO and other members are positively related to the long-term performance of the company.The article demonstrates the conjecture that the difference between CEO and other members of the executive team has different effects on short-term innovation investment and long-term performance,enriching the heterogeneity research results in high-order theory.The research of CEO power shows that the CEO also serves as the chairman of the board,which promotes the positive effect of gender heterogeneity of CEO and other members on the long-term performance of the company,and exacerbates the negative effects of age heterogeneity of CEO and other members on the short-term innovation investment of the company.Therefore,this paper puts forward the following suggestions: First,listed companies should pay attention to the background characteristics of senior management team,and consciously construct a reasonablesenior management team when pursuing different performances.Second,listed companies should improve the CEO's power-giving system and increase the incentive level for CEO.Third,listed companies should adjust the composition of senior management according to the nature of the ownership of the enterprise and the industry in which it operates.