The Impact Of Official's Turnover And Tenure On The Financial Performance Of Listed Companies

Over the past thirty years of reform and opening up,China's economic development has made remarkable achievements.In the process of marketization for more than thirty years,local officials in China have played an active and important role in the economic development.In the governance system of political centralization and fiscal decentralization,local governments have a strong incentive to promote the reform of the intervention in the economy,the formation of a government led model of economic development,government leading mode is largely on the performance of principal officials,affect the local economic development pattern and rhythm,and the development of macro economy to micro the enterprise,therefore the principal officials of the government also affect the development of enterprises within the jurisdiction.Based on the dynamic data of prefecture level city officials and listed companies from 2003 to 2014,this paper investigates the impact of turnover and tenure on financial performance of Listed Companies in the area.This paper adopts two-way fixed effect model to explore the city officials influence turnover and tenure on the financial performance of listed companies within its jurisdiction,and analyzes the influence of the turnover,term samples of listed companies of state-owned listed companies and non listed companies,state-owned enterprises and non polluting industries polluting industries listed companies developed areas and underdeveloped areas of enterprise financial performance;finally,we analyze the impact of official turnover and tenure on the investment class,income class and cost index of Listed Companies in the area,and study the impact of personal characteristics on the company's financial performance in the area.The regression results show that the turnover has a negative effect on the financial performance of listed companies,and the turnover occurred in the year;officials have a positive effect on the financial performance of listed companies,including the impact on non listed companies in China and underdeveloped areas of the financial performance of the listed companies have inverted U shape.