A Study On The Impact Of Corporate Governance On The Top Management Team Stability

With the advent of the knowledge-based economy,the strategic resources that affect the development of social economy have been transformed from financial capital into a talent resource with new skills and creativity.Enterprises want to take the initiative in the fierce market competition,outstanding talent is its most important competitive weapon.Due to the separation of ownership and management rights and the existence of the principal-agent problem.The company will be through internal governance mechanisms to achieve the constraints of the executives and supervision,so as to achieve the purpose of maximizing business value.In the process of constraining supervisors,a common consequence is the turnover of executives.Through the statistics of China's Shanghai and Shenzhen A-share listed companies change the data of executives.Found that from 2009 to 2013,annual changes in the number of executives from 456 to 735,the average growth rate of 15%.The turnover of executives in China's listed companies is becoming more and more frequent.The change of main executives(chairman and general manager)is an important part of corporate governance.But the change of the chairman and the general manager often causes the personnel changes and the team reorganization of the senior management,and destroys the stability of the senior management team to varying degrees.This will affect the sustainability of the implementation of the company's strategy and the effectiveness of the company's performance improvement.Therefore,the research on the influencing factors of the stability of the senior management team after the change of the chairman and the general manager has important guiding significance for the listed companies.In this paper,we collect 1110 Shanghai and Shenzhen A-share listed companies which have changed their executives from 2009 to 2013 as samples.From the perspective of corporate governance.This paper studies the influence of corporate governance and executive turnover model on the stability of senior management after the change of ownership structure from the four aspects of ownership structure,board characteristics,board of supervisors characteristics and turnover type.Because of the state-owned companies and private companies in the corporate governance structure,executives of the employment mechanism,the mode of turnover of senior management,etc.there is a big difference.This paper studies the relationship between corporate governance and team stability under different property rights.The framework of this paper is: Firstly,it summarizes the research results on corporate governance,executive change and team stability,and analyzes the main conclusions and shortcomings of previous research.On this basis,the theoretical model is constructed and the research hypothesis is put forward.Then,the final research samples were collected and screened,and the data were analyzed by using statistical analysis software to test the hypothesis.Finally,summarize the conclusions of the study and put forward reasonable suggestions for the enterprise to deal with the turnover of senior executives,improve the use of the system,and improve the efficiency of corporate governance.The main results of this paper show that:(1)The stability of the senior executives of state-owned companies is lower than that of private companies,which means that the change of the senior executives in the state-owned enterprises is significant impact on the general executive.(2)In the private companies,the concentration of ownership is negatively correlated with the stability of the team after the change of senior management,while the state-owned companies do not have significant correlation.(3)In the state-owned companies,the proportion of independent directors and the size of the board of supervisors have a significant negative impact on the stability of the team,the relationship is not established in private companies.At the same time,the size of the board and the stability of the team was not significantly related.(4)The type of change of top management(mandatory change / routine change)does not have a significant effect on the stability of the team.But the external succession of executives and team stability is a significant negative correlation.These relationships are established in both state and private companies.