| Executive turnover and its link to firm performance have been the focus of a large and growing literature because they provide a crucial measure of the effectiveness with which a firm solves two principal-agent problems.A magnitude of publication on this field provided us a solid basis for further study.In China,the internal disciplinary mechanism that determines CEO turnover is particularly important due to the lack of effective markets for corporate control.In addition,due to our legal system is relatively underdeveloped and inefficient,and the ownership structure,the corporate governance is relatively poor.The two principal-agent problems are very acute,thus corporate governance problem is becoming an important problem that China's listed companies is facing with.In this paper,I try to begin with the turnover of top management of China's listed companies,by searching the information of top management turnover,direct of board,corporate performance etc.,basing on prior researchers' theories and related literature,to estimate the link between executive turnover and firm performance in Chinese listed firms and provide systematic evidence of the turnover-performance sensitivities of top executives,and I hope to find out the corporate governance problems in China's listed firms.Finally, some preliminary policy suggestions are given.This paper is arranged in six chapters.Each chapter's content is as following:Chapter 1 is an introduction of this paper.In this chapter,I explained why I chose to make this research,what this paper's content was and the research method of this paper.Chapter 2 is a general review on the research literatures related to the change of top management.I gathered research literatures related to the link between top management turnover and corporate performance and corporate governance, classified them and summarized them,as a literature basis for this paper.Chapter 3,provides a theoretical framework for this paper.I introduced the classical principal-agent theory,corporate governance theory and corporate control mechanism theory,as the starting point of my research;I also introduce some related laws and regulations,in order to make the reader know the regulation background of top management change in China.Chapter 4 provides us a panorama of the Chinese listed companies' top management turnovers.In this part,I introduced the select of sample,the source of data,the trend of top management turnover and the reason of top management etc. From those,we can find some clew about corporate governance of China's listed firms.Chapter 5 is the core of this paper.Based on the literatures and theory,and the general analysis of top management turnovers in China's listed companies,using econometrics method,I made an empirical analysis on the link between top management turnover and corporate performance and listed all the regression results.Chapter 6,I gave a general summary about the above findings,and brought forward some preliminary policy recommendations on how to improve corporate governance.Some limitation of this paper and future research issues are also discussed in this chapter. |
