Research On The Influence Of CEO Succession Sources On The Investment Efficiency Of Listed Companies

Since the reform of the supply-side structure,more and more enterprises in our country have gone through the process of economic development from "becoming bigger and stronger and doing better" to "becoming stronger and doing better and doing bigger".The "big but not strong" and "big but not superior" have become the key problems perplexing the business community.The low investment efficiency of enterprises has always been an inherent disease that perplexes our capital market.Efficient investment efficiency can activate corporate capital,obtain higher surplus profits and enhance corporate value.However,in reality,enterprises with low investment efficiency are everywhere,so how to improve the investment efficiency has become an important problem faced by enterprises.Based on this background,many scholars have carried on the thorough discussion to the enterprise investment efficiency formation reason and the economic consequence,the present research mainly carries on the analysis from the monetary policy,the industrial policy and the legal system environment and so on external factor;Some scholars also focus on the characteristics of management and study the influence of age,tenure,experience,ability and self-confidence of managers on the investment efficiency of enterprises.However,as the maker and executor of corporate strategic decisions,CEO plays a crucial role in investment decisions.In recent years,CEO change events have occurred frequently,but few scholars have explored the impact of CEO successor on corporate investment decisions based on the special perspective of CEO change.Therefore,in order to make up for the lack of research in the current field,this paper focuses on CEO succession events on the basis of the existing research,integrates CEO succession sources and corporate investment efficiency into the same research framework,analyzes the impact of different succession sources of CEO on corporate investment efficiency from the perspective of principal-agent and analyzes the mediating role of stability of senior management team.At the same time,we introduce ownership concentration and institutional investors’ shareholding as moderating variables to clarify the differences in the impact of CEO succession sources on corporate investment efficiency in different situations.Taking the listed companies in Shanghai and Shenzhen A shares as the initial research sample,based on the existing literature research,and determining the sample selection process and the year interval,the final observation value of the data is obtained after processing.The OLS method is used to empirically test the relevant assumptions,and the alternative investment efficiency measurement,tendency matching score(PSM)and sub-sample test are used to test the robustness.Finally,the following conclusions are drawn:(1)Compared with internal succession,the investment efficiency of enterprises with external succession of CEO is lower.(2)Compared with internal succession,the stability of the senior management team with external succession of CEO is worse.(3)Control other factors unchanged,there is a positive correlation between TMT stability and corporate investment efficiency(4)TMT stability plays an intermediary role in the relationship between CEO external succession and corporate investment efficiency.(5)Ownership concentration enhances the negative impact of CEO external succession on team stability.When the concentration of ownership is high,the negative impact of external CEO succession on the investment efficiency is stronger.(6)Institutional investors’ shareholding weakens the negative influence of CEO’s external succession on the stability of senior management team.When institutional investors hold more shares,the negative impact of external CEO succession on corporate investment efficiency is weaker.In this paper,the sources of CEO succession are divided into internal succession and external succession,and the impact of different sources of CEO on enterprise investment efficiency is further investigated.The stability of senior management team is taken as an intermediate path into the research framework,which enriches the path research of enterprise investment efficiency.Taking the ownership characteristics(institutional investors holding shares and ownership concentration)as the situational variables,this paper analyzes the differentiated impact of different sources of CEO succession on the investment efficiency of the enterprise in different situations,and analyzes the motivation and psychology of the CEO to adjust the investment decision after succession,in order to provide an effective reference for the enterprise to optimize the ownership structure,improve the quality of internal supervision and alleviate the short-sighted behavior of the management,and further promote the scientific management of the enterprise and improve the efficiency of corporate governance.