On How Top Management Team Heterogeneity Impacts Company Performance in Various Industry Sectors

摘要

In this paper, a sample of 233 listed companies from Shenzhen and Shanghai stock markets was selected, and an empirical analysis of the data about the top management team members from 2004 to 2006 was carried out. It found that: TMT educational background heterogeneity and functional background heterogeneity are positively related to firm performance; however, TMT educational level heterogeneity is negatively related to firm performance; TMT firm tenure heterogeneity is positively related to firm performance in a comparatively weak competitive industry, while TMT’s firm tenure heterogeneity is negatively related to firm performance in a comparatively strong competitive industry. The research results and prospects were explained in this paper.