TITLE:
Top Management Team Heterogeneity, Shareholding Proportion of the Largest Shareholder and Innovation Performance: A Study Based on a Panel Smooth Transition Regression Model
AUTHORS:
Yueying Lin
KEYWORDS:
TMT Heterogeneity, Shareholding Proportion of the Largest Shareholder, Range Effect, Nonlinear, Innovation Performance, Panel Smooth Transition Regression Model
JOURNAL NAME:
Open Journal of Business and Management,
Vol.6 No.1,
January
8,
2018
ABSTRACT: Research highlights the role of the shareholding proportion of the largest
shareholder (TOP1) in the relationship of top management team (TMT) heterogeneity
and corporate innovation performance. The empirical study
makes use of a panel smooth transition regression model (PSTR) to investigate
the nonlinear relationship between top management team (TMT) heterogeneity
and corporate innovation performance in listed companies of
household appliance industry. Data from a sample of 18 China listed household
appliance industry from 2004-2014 provides us with a good opportunity
to explore empirical evidences for the relationship. Following this idea, we
propose to detect innovation performance by focusing on the proportion of
the largest shareholder. We reveal that as the shareholding proportion of the
largest shareholder becomes different, a nonlinear transition is found in relationship
between TMT heterogeneity and innovation performance. The result
shows that the model is divided into low regime and high regime at the point
of TOP1 = 0.3144. Since equity structure and equity concentration varies in
different regimes, the influence of TMT heterogeneity on corporate innovation
performance has nonlinear changes as well.