Research On The Influence Of Entrepreneurs' Departure On The Performance Of The Company

By the end of December 31, 2014, a total of 406 companies listed in GEM, which has 69 companies in the information technology industry. In 69 companies, 21 companies did not post information, accounting for 30%, namely post information enterprises in this industry accounted for 70%. A growing number of executives turnover, increasingly wide range. Because of the decisions of the company executives holding power, shouldering the grasp of the development direction of the company, the executives turnover brings to the company’s performance has aroused the attention.First the paper reviews the related theory and literature founding that there is no unified view before. Generally speaking, some scholars believe that executive defections can promote the performance of the company; some scholars believe that executive defections have a negative impact on the performance of the company; the other scholars believe that the executive defections and the company’s performance did not have relationship. Because the researchers selected different research objects, the study period, the main variables and statistical methods, the conclusions are not the same. On the basis of previous research, this paper puts forward the hypothesis that the turnover of the top executives of the gem and the reduction of the stock of the company’s performance have an impact on the company’s performance.In order to analyze the latest and relatively complete data, this paper selects 69 companies which are in information industry in the GEM market in 2014.This paper constructs the evaluation index system of the performance of the company, selecting 10 related financial indexes from the four aspects of profitability, solvency, operation ability and development. And then calculate the comprehensive score of the gem information technology industry company according to the weighted variance contribution of each principal component, thus construction of performance evaluation index system. The executives leave or not, for whatever reason, executive turnover as independent variables, the comprehensive score of the company’s performance as the dependent variable, leaving executives whether reduce holdings of company shares as control variables for empirical analysis, it was found that the relationship of executive defections and company performance is not obvious; there is a gap between the companies which have executive defections for different reasons. The scores of companies witch because the normal reasons, such as health reasons, the expiration of the term, work adjustment and other reasons, is higher than abnormal reasons, such as resignation for personal reasons, dismissal and other reasons. Executive reduction has a significant negative impact on the performance of the company. The executives’ turnover behavior for normal reason has a significant positive effect on the company’s performance.According to the empirical analysis conclusions, the paper put forward the following suggestions: improve the incentive policy, strengthen enterprise culture motivation, optimize the information disclosure mechanism, and increase the quantity of management shareholding.