英文摘要 |
This study empirically explores the relationship between management characteristics and firm performance by using the top management members of Taiwan listed companies during the period of 2003 to 2005 as a sample. The results demonstrate that top management teams with higher management education background have higher accounting performance. However, the results also show that the more management experience the top management teams have, the lower the accounting performance. Firms whose CEOs maintain highly centralized internal power experience higher profitability, while CEO duality has a negative impact on accounting performance. Moreover, flatter organizational structures, managers’ reputations, and financial incentives for managers have a significantly positive influence on a firm’s performance. On the other hand, although the management team size is positively associated with accounting performance, the strength of the team’s management background is not reflected in the value of Tobin’s q, a proxy for market value. Surprisingly, we find that the average tenure of the top management team and outside directorate ties help increase a firm’s accounting performance, but that they also have a negative impact on its market value. Furthermore, we present the evidence that the divergent directions in the impact of management characteristics on accounting performance and market value, respectively, can be attributed to the degree of market competition. Specifically, for firms in highly competitive industries, the effect of management characteristics on accounting performance is in agreement with management characteristics on market value. |