The Influence Of Ceo Turnover To The Company Performance

The topic of CEO turnover and its influence to the performance of listed company has been hot for recent years. In a mature market economy, CEO position is of key importance to a listed company. A CEO takes charge of a listed company’s business and is responsible for the performance to the board of directors. CEO turnover can influence a listed company’s performance to some degree. So CEO turnover is a strategic event to a listed company. From the internal labor market theory, the research of internal promotion or external employment and their influences to the performance of listed company has significance in extending the internal labor market theory and listed company reform. On the subject of CEO turnover and CEO turnover modes’influence to the performance of listed company, it has not come to a unanimous conclusion so far.CEOs are also very important in Chinese listed companies. China’s economy is in high-speed developing, the listed company structure is complex and Chinese listed companies are in the legal representative system with Chinese characteristics. All of these make the CEOs’ influences to Chinese listed companies some particular. The reform of Chinese listed companies which is aim to set up modem enterprise system must lead the CEOs a more important status.This paper combines with the characteristics of Chinese listed companies and divides the listed companies into state held and privately owned companies according to ownership structure types, then uses the Propensity Score Matching method(PSM) and difference-in-differences model(DID) to research CEO turnover and CEO turnover modes’ influence to the performance of the different ownership structure type listed companies and come to these conclusions:first, state held and privately owned companies are different in CEOs turnover’s influences to the performance that CEO turnover makes the performance reduce in state held companies and raise in privately owned companies. Second, the CEOs turnover are less influential then the presidents turnover to the performance. Third, composed to external employment, internal promotion can raise the performance in state held companies. Internal promotion and external employment make the similar influence to the performance in privately owned companies.