The Influencing Factors Of The Financial Director's Voluntary Resignation And The Market Reaction

In twenty-first Century,the value of talent is becoming more and more prominent.The core competitiveness of the company is reflected in the cultivation and utilization of talents.The company executives determine the future and development of the enterprise.As one of the key roles of the chief executive,the CFO not only plays an important role in the financial operation and financial supervision of the enterprise,but also gradually extends to the business management and strategic decision.the frequent occurrence of the CFO voluntary turnover,at the same time,will cause stock price fluctuations because.investors will change their expected effect on enterprise’s development,so the CFO voluntary turnover factors and market reaction deserves our attention and discussion.In this paper,we review the literature from the reasons and market reactions of CFO voluntary turnover.We adopt the method of case study,put the Shan Dong Mill group’s CFO voluntary turnover as a sample.We analyze the case from operating performance,salary incentive,external supervision,information disclosure irregularities and find that the four aspects are factors in influencing the CFO voluntary turnover.The event study method is used to study the market reactions of CFO after leaving,The results show that the cumulative abnormal returns of this case is negative.The CFO voluntary turnover has a significant negative effect on the market.We get the conclusion and give advice from company level,external supervision and investors.This paper studies rich related theory about CFO turnover,at the same time,provides reference sample and experience when happen CFO voluntary turnover events sometime.At the last,this paper provides a profit or loss aversion reference for investors.