Does The Vacancy Of Senior Managers Affect The Performance Of State Owned Enterprises?

In recent years,with the mixed ownership reform of state-owned enterprises entering the deep-water area,scholars have also put forward many constructive suggestions from the aspects of management personnel compensation,equity incentive,equity structure and corporate governance system reform.As the helmsman of an enterprise,the chairman of the board undoubtedly plays an important role in the process of formulating the development strategy of the enterprise,and his personal ability affects the whole process of the development of the company to a certain extent.Compared with private enterprises,state-owned enterprises should also bear certain social responsibilities.The duality of their goals and the government’s intervention have a profound impact on corporate governance,and the unique performance appraisal mechanism of state-owned enterprises is more likely to limit the personal ability of the chairman.This paper investigates the impact of the chairman’s long-term vacancy on the performance of state-owned enterprises,studies the performance of the chairman’s personal ability,and explores the impact of the chairman’s personal background on the company’s business performance and the specific mechanism of the chairman’s long-term vacancy reducing the enterprise’s business performance.The existing literature and research show that the chairman of a company is very important to the operation and development of an enterprise.The personal history of the chairman,such as educational background,social relations and military experience,will affect the business strategy and even the specific business behavior of the enterprise.However,the existing literature on the ability of the chairman of the board mainly concentrated in private enterprises,even for the state-owned enterprises to play the ability of top managers controversial.This paper selects a sample of A-share listed state-owned enterprises whose chairman or general manager vacancy is more than three months from 2009 to 2019 to study the impact of executive vacancy on the company’s operation and performance.The main results of this paper are as follows:(1)the long-term vacancy of the chairman of the board of directors of state-owned enterprises will lead to a significant decline in the company’s operating performance,while for the state-owned enterprises with high degree of equity mix,the negative impact of the chairman’s long-term vacancy on the business performance is more prominent;(2)the reasons for the chairman’s resignation will not affect the company’s operating performance,which is in line with some previous studies On the contrary,the possible reason is that in order to eliminate the endogenous interference,the problematic chairman has been excluded from the sample.(3)The personal characteristics of the outgoing company chairman,such as age,working time,education background,etc.,have a significant impact on the company’s operation;(4)although most literatures believe that generalist CEO is more conducive to the development of the company,the empirical results show that for China’s state-owned enterprises,the professional chairman can play a more important role in the enterprise’s operation and development;(5)The long-term vacancy of the chairman of the board will increase the tendency of employing more redundant employees,which will lead to the increase of labor cost,rather than decrease the sensitivity of salary performance,and finally lead to the decrease of business performance.