Research On Influencing Factors And Enterprises' Risk Consequence Of Executives' Voluntary Turnover In Listed Companies

In the new era of socialism,China's economy continues to maintain stable development,but the shortage of human capital is still a vital factor restricting China's economic development.Executives are the core force of value creation of enterprises and play important roles in selection of strategic direction and strategic decision-making.However,in recent years,the frequent turnover of senior executives in China's listed companies has challenged the sustainable,stable and healthy development of enterprises,which has aroused widespread concern from all walks of life.According to the data in this study,the number of senior executives leaving the company was 6943 from 2006 to 2016,and the proportion of active turnover was 34%,showing an increasing trend year by year.With the general increase of executive turnover and the enhancement of its impact on enterprises,the research on the phenomenon of executive turnover is becoming more and more important.The literature mainly focused on the study of the passive turnover of senior managers.In a small number of studies on the active turnover of senior managers,it mainly focused on corporate and personal levels such as corporate valuation,executive compensation,as well as the study of the economic consequences of capital market reaction,business performance level and so on.This paper is different from previous studies,which intends to study the factors that affect the industry environment and the risk consequences of the enterprise.Based on the relevant basic theories,this study reveals the objective rules and regulations of the active turnover of the executives in the listed companies in China through mathematical statistics with the manual data of the active turnover of the chairman and the general manager of the listed companies in the non-financial industry A-share main board from 2006 to 2016,and analyzes the influencing factors and enterprise risks of the executives' voluntary resignation in the listed companies.Finally,from the perspective of industry prosperity,this study empirically tests the influencing factors of executive turnover decision,and empirically examines the impact of executive turnover on corporate risk from the two dimensions of business performance volatility and debt financing cost.The main contents of this study are as follows:Chapter?: Introduction.This chapter mainly introduces the realistic and theoretical background of this study,shows the research ideas and main research methods,and finally points out the innovation and contribution of this study.Chapter?: Theoretical basis and literature review.This chapter introduces the theoretical basis of this study,including principal-agent theory,prospects theory,enterprise risk theory,human capital theory,signal transmission theory,social identity theory and modern resource theory.Then,the relevant literature on executives' voluntary resignation is summarized from two aspects:influencing factors and economic consequences.Finally,the literature is reviewed.Chapter?: The theoretical analysis of the influencing factors and enterprises' risk consequence of executives' voluntary turnover.Firstly,this chapter analyzes the current situation of executives' voluntary turnover,combined with the existing research situation,focusing on the impact factors of active turnover of senior managers from the perspective of industry prosperity.Secondly,the chapter makes a theoretical analysis of the executives' voluntary turnover and corporate risk from the perspective of business performance volatility and debt financing cost.Chapter?: Analysis of the influencing factors of executives' voluntary turnover from the perspective of industry prosperity.The depressed industry development prospect increases the executive's performance risk,so the industry prosperity is an important influencing factor of the executive's voluntary turnover.This study finds that: the expected downturn in the industry boom increases the risk of executives' performance and significantly improves the probability of executives' active resignation;Senior managers' risk preference factors such as overconfidence and career concern may cause the difference of the impact of industry prosperity on the risk of senior managers' personal performance,which has a significant regulatory effect;Further research shows that a higher degree of equity checks and balances and a better regional institutional environment can effectively inhibit the executive's performance risk,thus reducing the probability of executive's active turnover;Through the comparative study with the passive turnover of executives,I find that the industry boom only has a significant impact on the active turnover of executives.The above evidence shows that the industry prosperity is an important factor affecting the voluntary resignation of executives.Chapter? and VI study the impact of executive turnover on corporate risk from two aspects of operational risk and financial analysis respectively.Chapter?: Executives' voluntary turnover and business risk: Based on the perspective of business performance volatility.The fluctuation of operating performance is the concentrated reflection of business risk,so this chapter examines the impact of executive turnover on business risk from the perspective of operating performance volatility.The empirical results of this chapter show that:the voluntary turnover of senior managers increase the future operating performance volatility as well as the business risk of the enterprise;However,the impact of executive turnover on the fluctuation of operating performance is mainly realized by reducing the efficiency of enterprise investment,especially by improving the mechanism of over investment.Further research shows that a smaller board size,a higher proportion of independent directors,and stronger risk-taking ability can effectively inhibit the impact of executive turnover on operating performance volatility.Chapter?: Executives' voluntary turnover and financial risk: Based on the perspective of debt financing cost.Debt financing cost is a concentrated reflection of the financial risk of an enterprise,which can effectively measure the level of financial risk faced by an enterprise.Therefore,from the perspective of debt financing cost,the sixth chapter examines the impact of executives' voluntary turnover on corporate financial risk.The empirical research shows that: the voluntary turnover of senior managers significantly increases the cost of corporate debt financing,and this effect is different due to the transparency and reliability of information.Higher level of analyst tracking and information disclosure quality can effectively inhibit the impact of the voluntary turnover of senior managers on corporate debt financing costs;Further research shows that the effect of executive turnover on the cost of corporate debt financing is more significant in non-state-owned enterprises and enterprises with lower proportion of institutional investors.Chapter?: Research conclusions,limitations and suggestions.This chapter summarizes the conclusions of this study,points out the limitations,and puts forward suggestions based on the research results.The research value of this study lies in::based on the relevant basic theories,this study uses both the normative research and empirical research to conduct in-depth research on the influencing factors and enterprise risks of the voluntary turnover of executives,forming a relatively complete research framework system.This study reveals the general law of the voluntary turnover of executives in listed companies and the mechanism of its impact on enterprise risk,which has a certain practical reference value for listed companies to avoid risks and achieve sustainable and healthy development.At the same time,this study also expands the research scope of executive turnover,further enriches and improves the existing research literature,which has a certain theoretical value.The main innovations of this study are as follows:Firstly,this study compares and analyzes the differences between voluntary turnover and passive turnover,which expands the research scope of executive change.This study makes a systematic comparative study of the differences between voluntary turnover and passive turnover,and explores the internal mechanism of the differences between the two turnover behaviors in influencing factors and enterprise risks.This study can not only enrich the existing research literature,but also deepen the understanding of the voluntary resignation behavior of Chinese listed companies,which has certain significance for the stable development of listed companies.Secondly,this study empirically analyzes and tests the impact of industry prosperity on executive turnover,which expands the research on the impact of micro environmental factors on micro individuals.This study compares and analyzes the differences between voluntary turnover and passive turnover,empirically tests the impact of industry prosperity on the two turnover behaviors,and focuses on the analysis and test of the internal mechanism of voluntary turnover.The research in this study is not only the expansion and exploration based on the existing research,but also provides empirical evidence for understanding the differences between the two different turnover behaviors,especially the internal mechanism of the active turnover behavior,and also provides some reference for how to reduce the professional risk of senior managers and mitigate the enterprise risk caused by the voluntary turnover of senior managers.Thirdly,this study empirically analyzes and tests the impact of executive turnover on corporate risk from the perspective of operational risk and financial risk,which expands the scope of research on the impact of micro individuals on micro enterprises.This study finds that the voluntary turnover of senior managers increase the fluctuation of business performance and the cost of debt financing,and intensifies the business risk and financial risk of the enterprise,which is of great significance for us to understand the adverse consequences of the voluntary turnover of senior managers,and also provides a thinking reference for the enterprise how to avoid risks.