The Top Management Turnover And Firm Performance On List Corporate

As the administrator of the enterprise,the senior executive of the enterprise play an important role in the formulation and implementation of the enterprise strategy and the development of the enterprise.It is precisely because the executives play an important role in the enterprise,so it is necessary to have a reasonable and sound corporate governance mechanism to constrain them.In order to effectively manage the principal-agent problem,in addition to the positive measures of the incentive system,the unqualified managers will be dismissed,so that the pressure of dismissal will be used to supervise the managers,and at the same time,they can choose more capable and more experienced managers to improve firm performance and optimize corporate resource allocation.Therefore,the senior executive turnover as an extreme means of controlling manager is not only the choice or decision made by the main owner of the company,but also the inevitable result of the continuous development of the company.This paper takes 2013-2017 as the investigation period,selects the company that only has the senior executive turnover in 2015 as the sample research object,and selects the company that did not have the senior executive turnover in 2013-2017 as the control group,using logit model regression and OLS regression to discuss the relationship between the senior executive turnover and the firm performance.This paper is divided into five parts.The first part mainly introduces the research background and research significance of this paper,which reflects the research value and the necessity of the research.At the same time,it describes the content structure of this paper to give the reader a general understanding the structure.Finally,it introduces the research method and research new ideas and deficiencies.The second part is related theoretical basis and literature review.The relevant theoretical basis mainly includes the definition of executives and other theoretical foundations,providing theoretical support for follow-up research,while the literature review part mainly sorts and elaborates the relationship between top management turnover and firm performance at home and abroad.The third part analyzes the status quo of senior executive turnover of listed companies in China,collects statistics on the reasons for the departure of executives,the way of succession and the status quo of turnover,and depicts the current turnover in executives of listed companies.The fourth part is research design and empirical analysis.In order to complete the research purpose,this part introduces the research hypothesis,sample and data selection,model design corresponding to the research hypothesis,specific empirical analysis process and results.According to the requirements of the research design,the data collected by the actual data is used to conduct descriptive statistics and empirical analysis through the statistical model of the data,and the corresponding conclusions are drawn.The fifth part is the policy suggestion and research prospects.It mainly proposes corresponding suggestion of existing phenomena and problems,and finally expounds the inadequacies and research prospects of this paper.The results of this study show that: 1.The low or negative performance of the company does make the company more prone to senior executive turnover.As an indicator of the performance of executives,ROE or ROA affects the retention of executives.The worse the performance,the more the firm performance declines,the more likely senior executive turnover will occur.Similarly,other factors restrict senior executive turnover,such as executive tenure,executive age,whether the chairman and general manager are the same person,etc.It indicates that firm performance is a major factor affecting senior executive turnover,but not the only factor.2.Senior executive turnover will have a positive impact on the firm performance improvement in the short term,but in the long run,this impact will no longer be significant.3.After dividing the senior executive into the chairman and general manager,it was found that when the firm performance was poor,especially when the firm performance declined,the company was more likely to replace the general manager than the chairman.In addition,when studying the influence of the chairman and general manager on the firm performance,it was found that the improvement of the firm performance in the short term after the chairman’s replacement was stronger than the replacement of the general manager.Although it is more difficult to replace the chairman,the performance improvement in the short term after replacement is even greater.