The management characteristics will affect R&D expenditure behavior and firm performance. This study uses the sample of firms listed in Taiwan Stock Exchange in 2010. In addition, this study uses multiple regression analysis to examine the impact of management characteristics and R&D expenditure on firm performance. The results demonstrate that the education of the management term is positively associated with R&D expenditure. Moreover, the results show that there is a significant positive relationship between the average tenure of the management term and firm performance. Furthermore, the study finds that the rate of management team with two or more outside directorships has a significant negative effect on firm performance. Finally, the interaction effect of the management education heterogeneity and R&D expenditure has a significant positive relationship on firm performance.