Executive Turnover Of Listed Companies In China Empirical Analysis

Top managers in listed companies are effect in management and decision with companies. The CEO's turnover is a very important decision for inventers and companies' internal managers .The news of top managers' turnover will make a shake in market, so the research of CEO turnover become a focus for inventers. In many west countries, the research of CEO's turnover have made for long time, and now they have a complete system of this research .However, in our China the documents on top managers' turnover are few, in particularly the research of factors which correlated CEO's turnover. This paper examines the effectiveness of Chinese corporate governance during the rapid transition of its economy to give some advices for improving the level of corporate governance. Firstly, this paper tell some theory, such as contract theory, agency theory and enterpriser theory ,this theory provide basis for our research. Secondly, this paper analyze the reality basis for the study. And then this article select the firms listed on Shenzhen Stock Exchanges for the period of 2003 to 2005.We collect the data of the companies which undergo the CEO's turnover. After regulating the datum, the study tests it, and then we draw some conclusions from this test: (1) The probability of CEO turnover is negatively related to the firm's prior performance. (2)The ratio of state's share is negatively to the CEO turnover.(3) There is a weak relationship between the probability of CEO turnover and a firm's internal governance mechanisms, in terms of ownership concentrations, outside director ratio, and size of boards. (4)The CEO power is negatively to the CEO turnover, that is to say ,the probability of CEO turnover is lower in the case of higher CEO duality, although, the result is not notable on statistics.