The Impact Of Top Management Turnover On Securities Companies’ Performance

For a long time, top management personnel’s turnover is an important content in the study of foreign securities market and economic management field, because it is the most important decision made by the board of directors or shareholders, and it is the important constraints mechanism of the enterprise managers acts. Some western scholars published a lot of thesis about the issue on the international top magazines of economic and management discipline, and they has obtained certain research results. Since the establishment of Shenzhen securities company in 1987, after the development of nearly 30 years, nowadays our country’s securities companies has become an important part of national economic development. In the process of development, it also emerged a large number of high-level personnel change cases, and it caused widespread concerns. Company mechanisms include the internal control mechanism, such as the supervision of the board of directors and board of supervisors, mutual supervision between internal management personnel;and external control mechanism, such as stock price fluctuations, the scramble of control rights and mergers and acquisitions, etc. The effectiveness of top management turnover is an important aspect of the validity of securities firm control mechanism. In 2006, the China Securities Regulatory Commission issued “the securities company directors, supervisors and senior management personnel qualifications regulatory measures”, securities company’s top management qualification and change process have be explicitly stipulated. So what are the characteristics of securities company top management turnovers, and what is the influence on securities companies’ performance? The issue is a main research in this paper. Research on the economic consequences of top management turnover can analyze the deep-seated problems of corporate governance mechanism, especially to analyze the effectiveness of the company’s control mechanism.We select 81 securities companies in China as the research object, and examine the top management turnover and company performance with balance panel data. Company performance is not significantly related to the turnover of branch directors. The influence of senior management turnover on company performance is different over time. Firm performance reacts positively to supervisor turnover in a short period. The turnover of directors and independent directors can significantly improve firm performance. At the same time, this paper also concludes that the securities company’s total assets scale and the asset-liability ratio has a significant positive correlation with company performance, sales amount is negatively related to the business performance, the first big shareholder ownership and operating performance is not significantly positive correlated, the top five shareholders holding a significant negative relationship with company performance. Finally, according to the empirical analysis, this paper put forward the corresponding policy and recommendations.