RESEARCH ON THE RELATIONSHIP BETWEEN THE HETEROGENEITY OF THE TOP MANAGEMENT TEAM(TMT) AND THE TOTAL FACTOR PRODUCTIVITY(TFP) OF ENTERPRISES

Abstract

In recent years, the huge negative impact of COVID-19 has slowed down economic growth in many countries. Therefore, it is very important to study how to improve the total factor productivity to promote the development of enterprises. Top management team is the core position of an enterprise and has a key influence on total factor productivity. In China, the role of top management teams at listed companies is increasingly valued. This study analyzes the relationship between the heterogeneity of TMT and TFP based on the data obtained from Chinese A-share listed companies from 2007 to 2019. In the empirical study, the comprehensive heterogeneity index, age heterogeneity and tenure heterogeneity of top management team were used as proxy variables to construct a regression model, and the LP method was used to calculate TFP. The results are as follows:The comprehensive heterogeneity index of Top management team Has a significant negative impact on total factor productivity; The age heterogeneity of top management team has a significant positive impact on total factor productivity; Top management team tenure heterogeneity has a significant negative impact on total factor productivity.