(School of Economics, Anhui University, Hefei Anhui 230601)
Abstract: As the major players in making strategic choices and decisions for a company, corporate executives play a key role in the formation of corporate organizational strategies. Based on the real situation of China's Internet financial market, this paper has sampled 100 Internet finance companies and 98 non-Internet finance companies, and established a binary logistic regression model (CATPCA-Logistic) built up on the classification principal component analysis method. The aim is to study the possible role of the characteristics of the board of directors in the company’s entry into the Internet finance industry and its mechanisms therein. By separating the power index and the prestige index from the right concentration index, an analysis is made of the influence of multiple types of rights in the characteristics of the “concentration degrees” of the board of directors on the company’s entry into the Internet finance industry. The results show that the stronger political backgrounds of the board members, the higher prestige rights and the organization rights they enjoy, and the larger size of the board of directors, the higher likelihood of the company’s entry into the mutual gold industry, while the higher average age of the board members, the more financial work experience they have, and the higher the proportion of female directors, the less likely the desired entry will be realized. In addition, academic qualifications do not seem to have significant effect on the entry in question. Corresponding policy recommendations are thus proposed in the paper.
Key words: Internet finance; characteristics of the board of directors; CATPCA-Logistic model