The Study On The Relationship Between The Senior Manager Turnover Of Listed Companies Of China And Enterprises’performance

Senior managers, especially zongjingli who is responsible for daily management of theenterprise, is the soul of the company. According to the internal and external of enterprise’senvironment, they plan the development strategy, grasp the general trend of development ofenterprise. So, the decision they make to a certain extent affect the survival of enterprises. Inorder to better supervise and motivate senior managers reach the goal of enterprises, executiveturnover mechanism plays an important role. Therefore, the relationship between the seniormanager turnover of the listed companies and enterprise performance has been a focal pointof intensive academic research. However, because of the difference between researchers’research variable sample size and research technique, the relationship between the seniormanager turnover of the listed companies and enterprise performance is still in controversy.Therefore we have the necessity to deep research on the question.On the basis of the domestic and foreign literature, this paper combines with theoreticalresearch and empirical study. The paper is divided into five parts to discuss the question. Withthe principal-agent theory Maslow’s hierarchy of needs theory and signaling theory, wepropose the research hypothesis. The supposition one proposes that poor performance willlead to different types of zongjingli turnover. While, different types of zongjingli turnover willimprove the performance of enterprises.Before the empirical analysis, the paper has been designed carefully. First, introduce theresource of data and how to select. Second, explain the explained variable explanatoryvariable and control variable. Finally, constructs a multi classification Logistic model and adummy variable regression model. Because the enterprise performance is an important factorto zongjingli turnover, so the paper introduces factor analysis method to process performance.in detail. The paper get a collection of zongjingl turnover enterprises’ and the same zongjinglienterprises’data of the year of200620072009and2010. The data comprise of13specificperformance index, including profit ability debt paying ability operation ability and growthability. And the, adjust the data by industry average value. Subsequently, the paper tests thesample adequacy of Kasier-Meyer-Olkin Measure extracts the main factor and interpretsthe meaning of the rotated component matrix of the proposed factor, and finally forming thecomprehensive performance. Empirical part is to test the relationship between zonjingli turnover in the listed companiesand enterprises’ performance. According to the multi classification Logistic test. The paperfinds that enterprises’ performance is significant negative correlation with the type of jobchanges of zongjingli turnover. While, the relationship between zongjingli turnover andenterprises’ performance is contrary to that of other types. In a word, part of the researchhypothesis is validated. The hypothesis that is not validated may be caused by the financialcrisis. In the financial environment, the board of directors who can determine zongjingliwhether leave or not may pay more attention to the investors who can get what informationfrom the company. Because the poor performance that is in the range of tolerance is comparedwith the environment. It can express investors information that our enterprise is trus tworthy.From the dummy variable regression analysis, the paper finds that the types of zongjignlturnover is not the main factor of the enterprises’ performance. But the type of work changeswill reduce the performance of the enterprise.Finally, the paper proposes constructive suggestions basing on the empirical results. First,improve the performance of enterprise reasonable. Secondly, build the manager marketperfectly. Manager market is the transportation of senior managers, The market takesresponsible for recording evaluating monitoring and screening the managers’ behavior.Therefore. both of the enterprises who need senior managers and senior managers themselveswho are highly of praised can benefit from a good market. And put a proposal to improvesenior managers’ removal mechanism in our country. The listed companies from thestated-owned enterprise restructured should select proper managers from managers market.While, the non-stated-owned listed companies with making the decision of firing zongjignliwho is serving should consider the comprehensive consideration of environmental factors.