Share This Article:

Study on Relationship between Officers’ Education Background and Performance of Listed Companies on Growth Enterprise Board

Abstract Full-Text HTML XML Download Download as PDF (Size:354KB) PP. 95-100
DOI: 10.4236/jss.2015.310014    2,581 Downloads   2,925 Views   Citations

ABSTRACT

For the purpose of supporting SMEs with vigorous growth and innovativeness, listed companies on GEM (growth enterprise board) offer a financing platform for China’s self-dependent innovation strategies, enriching the multi-level capital market system. Against the background that nationwide enterprise-starting is encouraged, listing on GEM becomes the ultimate goal sought by numerous entrepreneurs and their teams; under this circumstance, relationship between entrepreneurs’ education background and operation performance of their companies came up as a hot topic. According to the human capital theory, the education is an important approach and means creating and improving human capital. Education degree reflects the education background one undergoes; therefore, it may be considered as an indicator showing the human capital investment via education. For the officer team of any enterprise, specific human capital may not only affect interaction among the officer team, but also significantly influence the company performance. Based on the human capital theory, this paper, by use of data about 406 listed companies on GEM in 2014 and taking company size and officer’s compensation as control variable, makes a study on the relationship between the officers’ education background and company performance of listed companies on GEM. Through studying, it is revealed that there exists no correlation between the officer’ education background and performance of listed companies on GEM. As a result, it is recommended that great importance should be attached to ability development while improving education degree. In recruiting, a company shall focus on the applicants’ ability.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Zhao, C. and Liao, M. (2015) Study on Relationship between Officers’ Education Background and Performance of Listed Companies on Growth Enterprise Board. Open Journal of Social Sciences, 3, 95-100. doi: 10.4236/jss.2015.310014.

References

[1] Hambrick, D.C. and Mason, P.A. (1984) Upper Echelons: The Organization as a Reflection of Its Top Managers. Academy of Management Review, 9, 193-207.
[2] Schultz, T.W. (1961) Investment In Human Capital. American Economic Review, 51, 1-17.
[3] Ehrenberg, R.G. and Smith, R.S. (2003) Modern Labor Economics Theory and Public Policy. 8th Edition, Pearson Education, Inc., New York.
[4] Romer, P.M. (1986) Increasing Returns and Long Run Growth. Journal of Political Economy, 5, 1002-1037. http://dx.doi.org/10.1086/261420
[5] Lucas, R.E. (1988) On the Mechanics of Economic Development. Journal of Monetary Economics, 22, 3-42. http://dx.doi.org/10.1016/0304-3932(88)90168-7
[6] Cabello-Medina, C., López-Cabrales, á. and Valle-Cabrera, R. (2011) Leveraging the Innovative Performance of Human Capital through HRM and Social Capital in Spanish Firms. The International Journal of Human Resource Management, 22, 807-828. http://dx.doi.org/10.1080/09585192.2011.555125
[7] Franck, E., Nüesch, S. and Pieper, J. (2011) Specific Human Capital as a Source of Superior Team Performance. Human Capital, 63, 376-392.
[8] Thomas, W.H. and Feldman, D.C. (2009) How Broadly Does Education Contribute to Job Performance? Personnel Psychology, 62, 89-134. http://dx.doi.org/10.1111/j.1744-6570.2008.01130.x
[9] Wiersema, M.F. and Bantel, K.A. (1992) Top Management Team Demography and Corporate Strategic Change. Academy of Management Journal, 35, 91-121. http://dx.doi.org/10.2307/256474
[10] Tihanyi, L., Ellstrand, A.E., Daily, C.M. and Dalton, D.R. (2000) Composition of the Top Management Team and Firm International Diversification. Journal of Management, 26, 1157-1177. http://dx.doi.org/10.1177/014920630002600605
[11] Daily, C.M. and Johnson, J.L. (1997) Sources of CEO Power and Firm Financial Performance: A Longitudinal Assessment. Journal of Management, 23, 97-117. http://dx.doi.org/10.1177/014920639702300201
[12] Gottesman, A.A. and Morey, M.R. (2005) Does a Better Education Make for Better Managers? An Empirical Examination of CEO Educational Quality and Firm Performance. Working Paper Series.
[13] Flood, F. (1997) Top Management Teams and Pioneering: A Resource-Based View. The International Journal of Human Resource Management, 8, 291-306. http://dx.doi.org/10.1080/095851997341658

  
comments powered by Disqus

Copyright © 2019 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.