The Influence of Director's Face Score and Ability on The Company's Financial Performance

Abstract

With the accelerating pace of globalization, directors, as an important force with actual power and authority in the company, are inextricably linked with internal management and external activities of the company. Therefore, the personal characteristics of the directors have great impact on the performance of the company. This paper takes 722 listed non-financial companies in China's GEM as an example. It focuses on the study of the personal characteristics of the company's directors including face score and ability. The research conclusions show that: In the listed companies on the Growth Enterprise Market, the directors' abilities have a significant positive impact on the company's IPO activity, and the directors' face scores have a negative influence on the ROA of the company at the initial stage of the director's entry into the company.