A Study On Top Management Turnover And Private Benefits Of Top Management

In recent years,the huge amount of the job consumption has aroused great concern of the private benefits of top management.Over the past 2008-2012 years,the level of top management's job consumption in the state-owned listed companies is 15 times higher than the basic salary,which is far greater than the monetary compensation.At the same time,China's capital market often appears the phenomenon that the growth rate of top management compensation in listed companies is higher than the growth rate of corporate profits or the corporate profits is negative growth,while top management compensation is positively increasing.The reasons for the abnormal growth of top management compensation,corruption and large job consumption are that top management can seek private benefits through controlling the company.After 1980,the state decentralization led enterprises gradually reform to market-oriented,top management power will be condensed and improved.Top management turnover is an important factor affecting internal governance.The replacement of top management can restrain the behavior of damaging the development of the company and damaging the interests of the shareholders because of seeking personal profits and the company's operating performance will been improved on the existing basis.Therefore,this paper will study the impact of top management turnover on private benefits of executives from the perspective of top management turnover,which includes two aspects: on the one hand,the occurrence of top management turnover has an impact on monetary private benefits;on the other hand,the effect of changing top management on non-monetary private benefits is changed.This paper uses a combination of normative research and empirical testing to verify the correlation between top management turnover and private benefits.Firstly,to find out the limitations of research theory,reviewing and combing the existing domestic literatures and foreign literatures of top management turnover and private benefits.What's more,using empirical research method,all A shares listed companies in Shanghai and Shenzhen two cities from 2011 to2015 were selected as the research samples.Taking A stock company that happened top management turnover of Shanghai and Shenzhen two cities in 2010-2014 top management as the research object,the private benefits of top management after the change are studied.We construct the regression analysis model through the data collection of the CSMAR database of corporate governance data and corporate financialdata and China company internal control research-Debo database.In this paper,the private benefits of top management are divided into two categories: monetary private benefits and non-monetary private benefits.The assumption private benefits of top management beyond the normal level as dependent variable and whether top management change as an independent variable are used to make assumptions and estimates of the relationship between top managements' unreasonable private benefits and top management turnover.The regressions contain: regression analysis of the influence of top management turnover on top management monetary private benefits,Regression analysis of the influence of chief top management turnover on executive non-monetary private benefits,Regression analysis of the influence of different top management turnover on the non-monetary private benefits of top management,Regression analysis of the influence of different positions on the non-monetary private benefits of top management,regression analysis of the influence of different corporate nature on non-monetary private benefits of top management.In this paper,the following conclusions are drawn: 1.The positive correlation between turnover of top management and monetary private gain is not significant 2.Top management turnover has an inhibitory effect on non-monetary private benefits of the year after top management change 3.Compared with state-owned enterprises,the change of top management in non-state-owned enterprises is negatively correlated with non-monetary private benefits,which is more significant 4.The effect of top management turnover in different positions is different.Compared with the change of chairman,the change of general manager has significant inhibitory effect on non-monetary private benefits 5.Top management turnover with unofficial reasons have stronger inhibitory effects on non-monetary private benefits,and this phenomenon is more prominent in non-state-owned listed companies.On the basis of empirical research,this paper studies the effect of top management change on private benefits based on the theory of higher order,which enriches the relevant research of private benefits of top management.The regression method using big data,the empirical test of the impact of changes to the top management of private benefits,enrich the theory analysis of top management changes caused by the economic effect and provide a more effective choice for the management of private benefits of top management in the future.