An Analysis Of Influencing Factors Of Top Management Turnover

For a long time, it is an important content to study top management turnovers in oversea securities business and management area. Since it is one of the most major decisions which shareholders and the board of directors make, and is also regarded as significant mechanism to restrain managers. At the moment China moving forward to market economy, many top management turnover cases occur in the listed companies, which become a hot topic gradually. The text selects a number of data and cases in securities business and explores whether it have relativity or not among some certain factors and chairman or CEO turnover. Then, we use the theoretical model and statistical tests methods in western academic research to analyze the result, and hope to offer empirical proofs for top management turnover and provide some suggestions.This text selects nine factors, and emphasizes the relativity between the factors and the likelihood of turnover. The results show that firm performance and ownership structure have important influence on top management turnover, but the proportion of state-shareholding is significantly less sensitive to it. We also conclude that the impact of control transfer on top management turnover is significant via poor performance. Because of the incentive effects of high ownership, CEO or chairman always follow a good performance; the likelihood of turnover is negative with the managerial ownership. The sensitivity of top management turnover is higher when the CEO and chairman duties are vested in the same individual, for the combination of the CEO and chairman positions will result in poor performance easily. However, there is not so much evidence to approve that the proportion of independent directors and independency of the chairman or CEO has relations with the likelihood of turnover in statistics. In addition, our findings hold that the degree of competition in product market is positive with the likelihood of turnover. Finally, controlling for firm performance, we find that the probability of the chairman or CEO turnover differs between small and large firms.