Research On The Impact Of The Educational Background Of The Top Management Teams Of Chinese Listed Companies On Violation

Since the establishment of China’s securities market,the operation of the legal system gradually tends to improve,in which the interests of listed companies and investors have been effectively protected to a large extent.However,with the increasing number of listed companies,the illegal behaviors of listed companies are gradually increasing,which infringe on the interests of investors and affect the development of the securities market.Therefore,the company’s illegal behaviors have become the focus of attention and punishment of the CSRC and the Shanghai and Shenzhen stock exchanges.The listed company’s illegal behavior is not only affected by the external environment,such as the institutional environment and media supervision,but also has a great relationship with the company’s internal factors.The executives of listed companies,as the decision-makers and implementers of corporate strategy,play an important role in the performance of listed companies.In the 21 st century,talent is the most powerful driving force of productivity and wealth.It also plays an important role in the long-term and stable development of the company.There is a close relationship between the violations of listed companies and executives’ cognitive level and decision-making behavior.First of all,based on the data of A-share listed companies in Shanghai and Shenzhen from 2010 to 2019,this paper uses the educational background of top management team(TMT),MBA background and studying abroad background to measure the educational background.By using logistic model,this paper first studies the influence of TMT’s educational background on the company’s illegal behavior,and then further studies the relationship between TMT’s educational background and listed companies’ internal control defects the relationship between the company’s violations.The results show that: there is a significant negative correlation between the education background of top management team and corporate violations,that is,when the top management team has a good education background,the company is less likely to have violations;the results of regulatory effect show that the defects of internal control will weaken the relationship between the education background of top management team and corporate violations.Secondly,in order to further test the stability of the results of the paper,this paper adds a robustness test,which measures the company’s illegal behavior as the explained variable by the severity of the company’s illegal behavior,and selects the ordered logistic model,and the test results are basically consistent with the main test results.Finally,according to the test results of the paper,this paper puts forward some suggestions from three aspects: the selection of the company’s internal top management team and the strengthening of internal governance,the improvement of executives’ cognitive ability,and the investment perspective of investors,to make the listed companies obtain long-term stable income and reduce the occurrence of violations,so as to protect the interests of investors to a greater extent and ensure the stability of the stock market.