Performance Changes Following Top Management Turnover For Financially Distressed Listed Companies

Corporatisation is the priority in China's economic reform began in 1978, Which involves transforming SOEs (or certain assets and activities of the SOEs) into profit making firms with share capital. Although China's economy has experienced strong growth with burgeoning exports, high domestic demand, and improved technology, listed firms report moderate-to-poor profitability.Agency theory argues that management should be held accountable for their firm's performance. Since the establishment of shareholding companies and shareholding structures in China, There is now a separation of the political role and business role of...