Executives Change, Management Equity And Team Stability

In the era of rapid economic development, competition among enterprises has become increasingly fierce, talent for gradually become an important core competitiveness, including senior management relating to the future development of corporate strategy and business policy, known as the soul of the enterprise people, they will affect the level of knowledge or absolute a business in the future development prospects. So for the rational management and team executives, the company will be achieved through internal governance mechanisms regulatory purposes, such as executives and regulatory constraints, including the internal governance mechanisms of the most common result is that the process of business development in the high-pipe replacement phenomenon. This is because senior management change is one of the important strategic business decisions affecting the company’s future operating performance and development strategy. The executives of listed companies in recent years the phenomenon of frequent changes in2005-2010Shenzhen and Shanghai A-share listed companies,79.2%of companies with executives change, executives change, especially principal executives (Chairman and Managing Director) changes, followed by senior management personnel changes,which also affects the stability of the executive team and corporate strategy implementation and performance and so on. Therefore, after the change on executive changes its executive team to study the stability of management executives of listed companies has important practical and theoretical significance.In the above foundation and China’s unique cultural background, the paper select2006-2010Shenzhen and Shanghai A-share listed companies as samples, through descriptive statistical analysis, correlation analysis and regression analysis and other data analysis methods executives a comprehensive study type of change, executives successor sources executives term limits, and other indicators of independence on executive positions after the change the stability of the executive team. Specifically, use managerial ownership as an adjustment variable, study characteristics and the occurrence of senior executives change after change the relationship between the stability of the executive team, as well as managerial ownership regulation in effect between the two. First, scholars in the executive change, team stability and other aspects of research of the sort, and on this basis, the paper put forward hypotheses and research model was constructed; then through samples collected empirical data analysis, summary conclusions against the company on the basis of how to deal with executives change event, the reasonable management executives and put forward some reasonable suggestions.The main results of this study show that:(1) the source and senior executive succession after the change has a negative correlation between the stability of the team,(2) the term of office of the outgoing executives and senior management team after the change negatively related to the stability of the main executives of the longer term,(3) successor executives worked independence and stability of the executive team positively correlated (4)The management equity has reverse adjusting effect on the relationship between the source and the stability of the team.