Research On The Influence Of Founder Turnover On Corporate Performance

Since the implementation of reform and opening up in 1978,the private economy has developed rapidly and become an important driving force for China's economic development.At the same time,the state has also issued a series of policies to support the development of the private economy.With the development of private economy,private enterprises have become the research object of domestic scholars,and as the leader of private enterprises,private listed companies are also widely concerned by scholars.In this process,a series of research topics related to private listed companies are derived.This paper focuses on the impact of the turnover of the founders of private listed companies on corporate performance.In recent years,the events of the founder turnover are often seen in newspapers.The reasons can be found that the first generation of founders have reached the age of retirement in the past 40 years since the reform and opening up,or they have no longer adapted to the development of the enterprise,so they need to change the leadership of the company.In addition,with the rapid development of China's economy and capital market,the merger and acquisition of enterprises and the competition for control rights are also emerging,which will lead the founders to leave the enterprises they founded.Moreover,with the further development of the economy,in the foreseeable future,more and more founders will leave.As an indicator of the company's development,we need to pay attention to the impact of the founder turnover on the company's performance.In order to explore the impact of the turnover of the founders of private listed companies on corporate performance,the author read the literature related to the founders and corporate performance before writing the paper.and gain a general understanding of the relationship between the two concepts,then conducted a literature review.First of all,this paper analyzes the principal-agent theory,human capital theory,transaction cost theory and information asymmetry theory.These theories show that the founder's participation in corporate governance can bring positive impact on corporate performance,and the turnover of the founder is not conducive to the follow-up development of the enterprise,so it puts forward that the founder turnover of private listed companies has a negative impact on corporate performance.Furthermore,this paper also makes a hypothesis about the time of the negative effect.Then,143 enterprises about founder turnover from 2014 to 2017 were taken as the original samples,and 143 enterprises whose founders did not turnover were taken as the control group by using the propensity score matching method(PSM).Finally,286 samples were obtained.This paper selects the changing performance of the founders after leaving office and before leaving office as the dependent variable,then takes whether the founders leave office as the independent variable,and selects six control variables combined with the theory and relevant literature.Finally,according to the empirical results,the conclusion of this paper is drawn,and relevant suggestions are given.The results show that there is a negative correlation between the turnover of founders and corporate performance,and the turnover of founders will reduce corporate performance.Through the study of the corporate performance in the following years after the founder left office,it is further found that the year when the founder left office and the first year after leaving office,the founder's leaving office has a negative correlation with corporate performance,but this negative correlation is not significant;in the second year after leaving office,the founder's leaving office has a significant negative correlation with corporate performance.From the perspective of Founder's turnover,this paper studies the impact on corporate performance,enriches the research content of the impact on corporate performance,and also expands the research scope of the impact of Founder's special identity on corporate performance,which has strong theoretical significance.At the same time,it has a certain practical significance to guide the enterprises that will face the turnover of the founders in the future how to alleviate the adverse effects of the turnover of the founders.