Study On Effect Of Corporate Governance On Disciplinary Top Manager Turnover

Under the sever competition of market, disciplinary top manager turnover is caused by the corporate governance. With the development of market economics, corporate governance is better and the frequency of top manager turnover is higher. Which factors of corporate government influence the disciplinary top manager turnovers of listed companies, and how influence that? This paper studies the relations of corporate governance and disciplinary top manager turnovers of listed companies, and examines the effectiveness of corporate government. On the basis of related research, this paper presents theories, the definition and kinds of top manager turnover, and laws related. The section of mechanisms discusses 2 relationships: the first is with board related characteristics and a disciplinary top manager turnover, and the second is with ownership structure and a disciplinary top manager turnover. Thus this section proposes nine hypotheses. This section also founds a game model of institution investment and top manager. According to listed companies information, this section redefines the disciplinary top manager turnover to match the situation of China. We collected a sample of disciplinary top manager turnover and a sample of control sample, which are both from companies that are listed on the Stock Exchange of China in 2002. This paper established two models to test hypothesis. Thus, the empirical results of these logistic models as follows: firstly, there is a remarkable negative relationship between performance of companies and the disciplinary top manager turnover. Secondly, the percent of directors, the number of board meeting have remarkable effects on the disciplinary top manager turnover. When the top manager is a member of board, the probability of his dismissal would be reduced. However, the board structure and size has no effects on the disciplinary top manager turnover.Thirdly, the effects of ownership structure shows that the percentages of board's stock and institution investments'have remarkable positive effects on the disciplinary top manager turnover. the percentages of state stock and current stock have no effects. According to the results, this paper gives some advices to strengthen the monitoring the top manager in the end of this paper.