Research On System Under The Constraints Of The CEO Turnover

Company executives are unique, competitive human capital. Executive change which is to improve the corporate governance structure is one important source of strength. The company's internal and external governance mechanisms will affect the executive changes. Executive management capacity of their own strengths and weaknesses will directly affect the future of sustainable business enterprises. Since the 21st century, China's accession to WTO, China's economic situation and institutional environment has undergone enormous changes. Listed Companies Corporate Governance as a key player, to play an important role, but executives of corporate governance changes will directly affect the results, thereby affecting the company in which development of the industry. Thus, executives in corporate governance plays a decisive role, executives of the change is even more worthy of our attention. China's economic and institutional environment has undergone great changes, executive changes will have some impact. Company changes in the external institutional environment changes how they affect executives? The company's performance in the external system by the impact of the environment, and executives there is any kind of relationship change? These issues deserve our careful study.From the corporate governance theory, principal agent theory and the theory of institutional change, combined with China's listed companies unique economic and institutional environment, to regulate the research and empirical research methods combined, selected on Dec.31,1999 the company marketed before the sample observed range of executive changes in 2003 and 2007, from a system that is market competition, environmental factors, degree, elements of market development, market level, the degree of government intervention in business, commodity market where the level of protection of the five areas The impact of the change of executives to find a different system of environmental factors on company performance, which in turn affect the executive changes. This paper studies characteristics of executive changes, using logit regression method, the system environmental variables and the relationship between the executive change an empirical test. This executive order to further analyze the underlying causes of changes in the empirical analysis to a study sample is divided into three cases:the full sample analysis; chairman of the board changes, general manager of change and comparative analysis of both changes; the first major shareholders state-owned shareholders and non-largest shareholder of comparative analysis of state-owned shareholders. The results showed that the largest shareholder is state-owned shareholders when the process of marketization, the government intervention in business, the degree of commodity market where the level of protection for the executive change was not obvious, In addition this study also found that the following important conclusions:First, we find that the stronger the degree of competition in the enterprise, the more powerful enterprise competitiveness, the lower the possibility of executive changes, that degree of market competition and executive change the relationship between a negative correlation. Second, good growth in the market area, executives will change the difficulty of the smaller, thereby increasing the possibility of changes to senior management, senior management changes and the relationship between company performance is negative. Third, the higher the level of the market, the company's external institutional environment will better protect the rights of shareholders, thereby increasing the efficiency of corporate governance, company performance and executives to change the relationship between the negative. Fourth, the government intervention in business, the greater the intensity, the greater the likelihood of executive changes, more frequent movement of personnel, executive changes and the relationship between corporate performance is negative. Fifth, the local government for greater efforts to protect the commodity market, the greater the likelihood of executive changes, executive changes and the relationship between corporate performance is negative.