Research On The Influence Of Top Management Team Heterogeneity On M&A Performance

M&A is one of the most efficient and dynamic tools in the capital market,it is an important way for companies to rapidly expand production scale,adjust industrial structure,promote capital concentration,optimize resource allocation.In Western countries,M&A has a history of more than 120 years from 1897,and a large number of well-known companies have rapidly risen and grown through M&A activity.Compared with Western countries,China's M&A market has developed relatively late and is not mature enough.However,in recent years,with the improvement of China's securities market,combined with the industrial transformation and the reform of state-owned companies,the development of China's M&A market has become more prosperous and the number of M&A activities has exploded.In academia,M&A activities have always been a focus of scholars,whether M&A activities create wealth for shareholders and improve company's performance,whether in foreign countries or domestic,the debate has never stopped.The top management team as the makers and executors of M&A activity,whether they are innovative and whether they can quickly respond to the threat,which plays a key role to the company's survival and development.Therefore,Is the M&A strategy formulated by the top management team successful? How does the background characteristics of the top management team affect the performance of small and medium-sized companies? This article will combine the special national conditions of our country,research and analyze the above questions,and put forward relevant suggestions.The conclusions in the paper have certain theoretical and practical significance for the small and medium-sized companies to carry out M&A activities and build a reasonable top management team.This article selects the listed companies which have happened M&A activity from 2011 to2015 in small and medium-sized boards.After screening according to certain criteria,1693 managers of 257 sample companies are finally obtained.After passing the single-sample T test and multiple linear regression model test,The following conclusions are drawn:(1)The average performance of the sample companies is significantly negative,and more than 40% of the companies,their performance is lower in the three years after the M&A activity,indicating that M&A activities is unsuccessful,M&A activity did not bring company's performanceimprovement.(2)The influence of term heterogeneity on M&A performance has not been verified.(3)The heterogeneity of educational background is significantly positively correlated with the M&A performance.That is,the greater the difference in the educational background of the management team members,the more effective the decisions made,which is conducive to improving M&A performance.(4)In the longer term,the heterogeneity of career background is significantly positively correlated with corporate M&A performance.That is,the greater the difference in the career background among the top management team members,the more beneficial it is for companies to make high-quality programs,then improving M&A performance.(5)In the longer term,the age heterogeneity is significantly positively correlated with corporate M&A performance.Young managers are innovative,and old managers are prudent and experienced.The both complement each other,which is conducive to companies investing in potential projects,bringing economic growth and improving company performance.