The Influence Of Top Management Team Inclusion On Corporate Governance Performance

The emergence of modern company system separates the ownership and management rights of enterprises,which leads to the problem of agency cost,and then the problem of corporate governance.How to improve corporate governance performance and promote the long-term development of enterprises is a topic that scholars and company operators are constantly studying.Under the trend of economic globalization,the competition among companies is becoming increasingly fierce.In order to gain greater market share,companies in various countries have carried out corporate governance reforms.However,the current situation of corporate governance in China is not optimistic,for example,the low level of corporate governance leads to the failure of internal supervision,the dominance of one share,the serious control of insiders,and so on,all of which will hinder the growth of enterprises.As a special resource,human capital plays an important role in social and economic activities because of its private nature and irreplaceability,so the owner of human capital becomes the manager or shareholder of the company.The competition among enterprises is mainly manifested in the contest of market share,and finally comes down to the competition of knowledge and technology with human capital as the carrier.The unrepeatable nature determines that human capital has an irreplaceable position in corporate governance,and the inclusiveness of senior management team is a concrete manifestation of the increasing concern of human capital.This paper takes the top management team as the research object,combines the inclusiveness of the top management team with corporate governance,and discusses how to improve the efficiency of corporate governance by analyzing the influence of the inclusiveness of the top management team on the efficiency of corporate governance.At present,listed companies are facing an increasingly complicated competitive environment,and a good corporate governance can not only make the enterprise survive,but also promote its development.Therefore,it is of practical significance to study the corporate governance performance from the perspective of the inclusiveness of the top management team.First of all,this paper discusses the theory and current situation of executive team and corporate governance respectively.Secondly,the relationship between executive team inclusiveness and corporate governance performance is discussed in detail.Based on verifying the effect of executive team inclusiveness on corporate governance performance,this paper designs an empirical study,and compares and verifies the samples of listed companies,which are divided into state-owned enterprises,private enterprises and full sample enterprises.Due to the incomplete data disclosure and the specific particularity of enterprises with different property rights,this paper selects the financial data of A-share companies listed on Shanghai and Shenzhen stock exchanges from 2015 to 2020 and several indicators of senior management team members,and takes the final total score and Tobin Q value obtained after principal component analysis of the financial indicators of the sample companies as the measurement indicators of corporate governance performance.The age,gender,education level,overseas background,financial background,academic background and multi-industry background of senior management team members are calculated by seven-dimensional Euclid,and the length of service of the most heterogeneous members in the team is used to measure the inclusiveness of senior management team.The empirical results show that: in state-owned enterprises,the inclusiveness of senior management team has a promoting effect on improving corporate governance performance.In private enterprises and full sample enterprises,there is an inverted U-shaped correlation between executive team inclusiveness and corporate governance performance.After that,the paper analyzes the test results and explains the reasons.The reliability of the research results is ensured by robustness test.Through heterogeneity analysis,this paper explores the differences in the influence of the inclusiveness of senior management teams of listed companies in different industries on governance performance.Finally,according to the empirical results,the author draws some conclusions,puts forward some suggestions,and points out the innovation and deficiency of this paper.This paper expands the understanding of the relationship between inclusiveness of senior management team and corporate governance performance,and provides empirical support for Chinese enterprises in the process of internationalization,that is,enterprises with different property rights should reasonably control the degree of inclusiveness,so as to avoid falling into the dilemma of corporate governance performance due to excessive improvement of inclusiveness.Strive to create a win-win situation in which inclusiveness and corporate governance performance improve together.