| With the rapid expansion of global operations of international corporations,Corporate decision makers and executives need to confront and deal with a growing number of internal and external information, while the traditional Board-Chairman-General Manager-style corporate governance structure blocks the transmission of information between decision makers and executives, which greatly impact managers’rapid response and ability to major decisions affecting the enterprise,and reduce the operating efficiency of enterprises.Some large multinational companies began to re-examine this type of corporate governance structure and do some change to it, this lead to the creation of the CEO system. The appearance of CEO opened up new avenuesfor more efficient management of the enterprise, which also reflects the genuine separation of corporate ownership and management rights. The establishment of CEO reflects the idea of capable to do, people-oriented and reasonably priced forhuman capital. Currently the establishment of CEO has been an internationally common practice for Company governance.In a sense the CEO is at the helm of the company, who has the ultimate authority to enforce management decisions. As the industry’s operating environment is becoming increasingly complex, which bring a deep level of industry reshuffle; there are also more frequentchanges in the business executives, especially in the CEO level. A leading global management consulting firm Booz Allen Hamilton on April18,2013published reportsof surveys about CEO on the world’s2500largest listed companies, the reports indicated:the2012worldwide CEO turnover rate is15%, which is the second highest since the past decade, CEO turnover within the program accounted for72%of all turnover, and the new CEO, mostly from within the enterprise, CEOturnover of Chinese enterprises is relatively low, but is also at a level of8%. Compared to5.5%in2007-2011, the growth rate is great, to a level of42.7%, and from the source of CEO succession,64percent of new CEO is generated internally. From another aspect also reflects that the Chinese enterprises have a positive attitude ofCEO turnover. In the face of a great situationof an economic upturn, by actively develop succession plans to stablize business leadership to help companies achieve development and breakthroughs.For a long time, CEO turnover has beenan important part of research in the domestic and international capital markets and corporate governance, and also is a hot issue of management research.CEO turnover as the most influential management changes, affects all aspects of business operations, they are at the center power of companies.To some extent, their management capabilities and entrepreneurialtalentdetermines a company’s growth and performance. The survival and development of enterprises are also closely linked with the success or failure of individual CEO. So CEO turnover is considered one of the most importantstrategic decision-making processfor enterprise developments.Based on the traditional principal-agent theory and the early corporate governance theory, in the1960sWestern scholars began a lot of fruitful research on listed company CEO turnover problem in industrialized countries.After more than10years of empirical research, until the1970sthe theoretical framework of CEO turnover is only in its embryonic form. Research on CEO turnover abroad isexpandedis in a matured market economy, while our country is currently in the stage of economic transition situation, since the1990s, state-owned enterprises on a large scale began corporate reform, and established the modern enterprise system, formulated a corporate governance structure with clear responsibilities, mutual restraint and gradually went to public. With capital market imperfections and relative lack of CEO turnover, foreign studydoes not explain thedeep-seated causes of the current CEO turnover of listed companies in China. On the other hand, most of China’s listed companiesareby the conversion fromstate-owned enterprises. Such companies have a strong government background, their CEO turnover is relatively complex, and the majority of the turnovers are administrative appointment. To minimize the influence of subjective component (administrative appointment and removal) for the replacement of CEO, this paper initially select samples that have established modern corporate governance structure and the larger sample of companies listed on GEM to have an in-depth study on GEM listed company CEO turnover motivation.Since the GEM market is not mature enough, the mechanism of social entrepreneurship is not perfect and the reasons such as the asymmetric risks and benefits of GEM. Since October30,2009, the opening of Chinese Growth Enterprise Market, GEM ushered in the climax of the executives leave, and CEOs act as a central figure of the executive team, have an immeasurable effect on survival and development of enterprises, so a professional, systematic study of these enterprisesCEO turnoveris very meaningful.According to this, the main object of study of this paper is to investigate theimpact mechanism of CEO turnover of Chinese companies listed on GEM.Compared to the more mature GEM abroad, China GEM market is still in its infancy, there are many imperfections and areas for improvement, But it’s growing at an alarming rate. Until December31,2013, just a few years time, a total number of355independent innovation and entrepreneurial enterprises successfully listed on GEM of the Shenzhen Stock Exchange. In order toanalyze the impact mechanism of GEM listed company’s CEO turnover rmore comprehensively and systematically, the writer think we should studyboth theresults and process of the replacement. Based on previous research results and the above analysis, this study is divided into two parts:first, investigate the factors affecting the occurrence of all listed companies on GEM’s CEO turnover; second, treat the occurrence of CEO turnover of listed companies as samples to investigate factors that affecting its CEO replacement process, with the CEO replacement process been divided into outgoing type and successor type, outgoing types including forced and voluntary departure, while successor type including internal and external successor.The overall study idea of this paper is:based on the principal-agent theory, human capital theory and resource dependency theory, summarize and induce of previous research results, treat the rapid developing companies listed on GEM as samples, propose appropriate assumptions from corporate performance, the company characteristics, CEO characteristics, control over the market of these these four aspects and model, and to verify the assumptions based on financial data and corporate governance information disclosed by listed companies. It seeks to conduct a comprehensive, in-depth study of CEO turnover of these enterprises, and provide reference for the improvement of China’s private enterprises’corporate governance structure, related systems of the securities market regulatory authorities and the market environment.Logical framework of this study is:(1):Introduction:Describes the background, combined with domestic and international research on CEO turnover, then come up with the research intention; then discusses the theoretical and practical significance of this paper; conclude the research ideas, research methods, content and research framework of this paper; finally, concludes the innovation of this paper.(2) Literature Review:Focus on both domestic and international research related to the replacement of CEO, finish into a literature review from four aspects of the enterprise performance, corporate characteristics, CEO characteristics, the market for corporate control.(3)Theoretical framework and assumptions:this chapter discusses three theoretical basis, the principal-agent theory, human capital theory, resource dependence theory, and use them to analyze CEO turnover. Established on the basis of theory and the combination of literature research, this paper puts forward the research hypothesis. This chapter firstly combined with china’s specific situation, starting from the reality of our country, define the CEO, the CEO turnover, CEO’s departure (forced departure, voluntary departure), CEO succession sources (internal succession, external successor) clearly. Then this paper discusses the three theoretical basis, the principal-agent theory, human capital theory, resource dependence theory.(4)Empirical study design:first of all sort samples and data sorting and filtering, Then according to the research hypothesis, choosing corresponding explanation variables and interpreted; Then define the CEO related concepts and variables. Finally according to the variable category selection, we study the model and model design.(5)Empirical research:Firstly collecting financial data and corporate governance from CSMAR database and Shenzhen Stock exchange website, studying the samples of statistical description; Then establishing the Logit model to test the hypothesis; after the regression results, analyzing the empirical conclusions.(6)Conclusion and prospect:Summarizing the research achievements of this paper, pointing out the limitations and shortcomings of this study, forecasting the direction of future research.In this paper, We use the regression analysis method with software SPSS20.0. The hypothesis is verified and we get the following conclusion:(1) Corporate performance is negatively related to the CEO turnover significantly(2) Corporate performance is negatively related to the CEO forced departure significantly(3) Corporate performance is negatively related to the CEO external successor significantly(4) Industry is positively related to the CEO turnover significantly(5) Corporate size is positively related to the CEO internal successor significantly(6) The first shareholder stake is positively related to the CEO external successor significantly(7) Boarding scale is positively related to the CEO turnover significantly(8) CEO age is negatively related to the CEO forced departure significantly(9) The education degree of CEO is positively related to the CEO turnover significantly(10)The education degree of CEO is positively related to the CEO forced departure significantly(11)The office term of CEO is negatively related to the CEO forced departure significantly(12)Merger is positively related to the CEO turnover significantly... |
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