Empirical Study Of The Relationship Between Chairman Turnover And Operating Performance

For a long time, it is an important content to study top management turnover in security market and management area. Since it is one of the most major decisions which shareholders or the board of directors make, and also is regarded as significant mechanism to restrain managers. In listed companies, chairman, as the agent of shareholders, is usually appointed by the government. Recently, there are many chairman turnover cases, which draw much attention. The paper will focus on the causes and economical consequence of chairman turnover, and explore the relationship between chairman turnover and corporate performance based on a number of data and cases in security market. The theoretical model and statistical tests method refer to the results in western academic circles research. The results of the study offer empirical proof for chairman turnovers and give some suggestions.The main research contents are as follows: firstly documents the related literature to top management turnover at home and abroad, which are the sources of research thought; secondly, it shows the status quo of chairman turnovers, and investigates the causes and possible economic consequence; then examines the relationship between chairman turnover and operating performance, in order to analyze the role of inside control mechanism in chairman turnover. Moreover, it explores related influential factors to chairman succession, especially operating performance. Meanwhile, it studies the earnings management situation in the course of turnover, with the expanded Johns model.