How Do Top Management Team Characteristics Affect the Firm Innovation in China Growth Enterprise Market? The Moderating Role of Managerial Incentives
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This article aimed to study how the top management team (TMT) demographic characteristics affect the innovation of firms in China Growth Enterprise Market. Besides, the paper tended to find out what the role of managerial incentive scheme plays in the relationship between the TMT characteristics and the innovation. The samples were the listed firms in China Growth Enterprise Market. The TMT characteristics of sample firms were obtained from the CSMAR database and the annual reports. Analysis data by Descriptive statistics and Content Analysis. The research results were found as follows; 1. Take age, gender, professional background, educational level and team size as proxy variables to measure the characteristics of TMT. It found out that the age and the proportion of female managers are negatively with the Research and Development (R&D) investment. The professional background, the educational level and the team size affect the R&D investment positively. This influence remains even after controlling for the impact of enterprise scale and performance. 2. The presence of managerial incentive schemes (salary incentive and stock option incentive) increases corporate innovation effort, and the impact of salary incentive is significant; whereas, the stock option incentive is not. 3. The moderating influence of salary incentive and stock option incentive on the relationship between TMT characteristics and R&D investment behavior has been tested. The results showed that the salary incentive strengthens the effect of the TMT characteristics on the R&D investment. However, the stock option incentive does not.
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