An Empirical Study Of The Relationship Between Top Management Turnover And Firm Performance Based On Chinese Listed Companies

Due to the increasingly fierce competition in the industry and the deepening of globalization,the theoretical study of enterprise management is becoming more and more perfect,and the turnover of managers in major enterprises is gradually frequent.With the deepening of the reform of the joint-stock system in China,the status of state-owned holding enterprises in the whole securities industry is getting higher and higher.However,the securities market in China has not yet been perfected.Many state-owned holding enterprises still have a series of problems,such as unclear ownership of shares,imperfect company system and too complicated principalagent chain.Most of the listed companies of private enterprises are managed by means of family system.Unlike the development of securities industry in western developed countries,the development of listed companies in China is closely related to China’s national conditions.Therefore,it is necessary to carry out research on listed companies in China,to study whether the change of managers is related to performance decline,whether the change of managers can have a positive impact on performance,and whether there are differences in change frequency between managers of state-owned enterprises and managers of private enterprises.Through sorting out the data disclosed in Guotai’an database,this paper chooses 1946 listed companies that have experienced executive turnover as samples from 2013 to 2015,divides executive changes into mandatory and non-mandatory changes,carries out regression analysis according to the factors leading to executive mandatory turnover and the changes of corporate performance after executive mandatory turnover,and finally draws the following conclusions: Mandatory changes in executives are negatively correlated with business performance.Among other factors of executive turnover,there is a significant negative correlation between the age of departing executives and the turnover of employees.The tenure of departing executives is negatively correlated with the mandatory change of executives.Economic policy uncertainty is significantly negatively correlated with mandatory changes in executives.The nature of corporate equity is positively correlated with the mandatory change of executives.That is to say,state-owned enterprises are more likely to have mandatory change of executives.When observing the relationship between executive turnover and corporate performance,we can draw the following conclusions: executive turnover has a significant effect on performance improvement in the short term,but not in the long run.Based on the results of theoretical analysis and empirical test,we can find that there are still many defects in corporate governance of listed companies in China.This paper puts forward feasible suggestions after studying and analyzing the current situation of the appointment and removal system of top managers,the supervision system of enterprises and the construction of managers’ market.The main contribution of this paper is that,on the one hand,most of the previous literature studies have included internal or external factors of corporate governance mechanisms,and this paper studies both the internal and external factors of corporate governance mechanisms,and also takes into account economic policy uncertainty.On the other hand,most of the domestic and foreign literatures are data analysis in earlier years.This paper will use the latest Chinese listed company data to conduct research to understand the latest corporate governance in China and propose some new policy suggestion.The shortcoming of this paper is that in view of the many factors affecting executive change and business performance,there may be improvements in the selection and measurement of variables.In addition,this paper does not make a specific distinction between the types of positions of executives.