Family Firm’s CEO Turnover、Relations And Firm Performance

The CEO turnover plays a important role in the succession of family business. Different characteristic of the CEO have different impacts on firm performance. And after the turnover, the change of the relation between two CEO also has a impact on firm performance. So study the connection between the CEO turnover, relations and firm performances can provide some guidance in this area.Based on the perspective of the CEO social capital, this paper theoretically discussed the relation between the CEO characteristic and firm performance and the relation between the CEO turnover and firm performance. Based on the data of 123 listed companies of family control have turnover their CEO during 2010-2014, this paper discusses the relation between the CEO characteristic and firm performance. We test the relation from three important dimensions of social capital of the CEO, educational relations,business relations and political relations.The empirical results shows that before and after the turnover, both CEO educational relationships have significant impacts on firm performance, and because the successors’educational relationships is stronger than the predecessor’s, so the CEO turnover also has a significant impact on firm performance; before and after the turnover, both manager’s business related relationships have significant impacts on firm performance, and the CEO turnover doesn’t has a significant impact on firm performance; before and after the turnover, both CEO politic related relationships have significant impacts on firm performance.and because the successors’educational relationships is weaker than the predecessor’s, so the CEO turnover also has a significant impact on firm performanceThis paper’s study can provide some guidance in the CEO turnover in the succession of family business.