CEO Turnover In China Listed Companies: A Study Based On The Effectiveness Of The Board Of Directors

We first study the. definition of professional manager by comparing the concept of professional manager and entrepreneur. Tournament and internal labor market alleviate. contract problem to some degree in managerial market. We study the function of the board of directors, and find the neglect of supervisory-control function in China legal practice hinders the effectiveness of the board of directors in the course of CEO turnover.After an brief literature review, we analyze the selected samples of China listed companies in A stock with Logistic regression, and get the following results that affect CEO turnover and succession:1. CEO turnover is obviously affected by firm performance, the worse the firm performance, the more frequent the CEO turnover.2. Leadership structure affect the effectiveness of the board of directors in CEO turnover, CEO duality hinder the turnover of CEO.3. Rising the percentage of independent directors does not improve the effectiveness of the board of directors in CEO turnover, independent directors can not function their supervisory responsibilities well in China listed companies..4. CEO succession is related to firm performance, the worse the firm performance, the more frequent the CEO outside hiring.5. There is no relationship between CEO succession and the features of the board of directors.This study indicates that the board of directors do not function well in CEO turnover and succession in China listed companies, and there are "weak" board of directors and "weak" independent directors. We analyze the reasons and supply relevant. suggestions in the end.