Empirical Study Of The Relationship Between Top Management Turnover And Corporation Performance In Our Listed Companies

The relationship between senior management personnel changes and the enterprise performance is an important content of researching corporate governance. From the principal-agent theory viewpoint, if the company governance mechanism is effective, the company's performance can be used as an important index for shareholder to evaluating executive management level. Good corporate governance mechanism can promptly make punishment to the poor performance of the company executives, timely dismiss incompetent executives, and hiring more suitable employment successor afresh. Along with our socialist market economic system reform, constantly improve the corporate governance structure.The senior managerial personnel of constraint forces are increasing in recent years.These led to a frequency change of senior management in our country,and aroused the attention from all walks of life.Is that frequent change of executive was caused by poor performance?What was brought to the listed company after the change of the executives? The listed companies in China was mostly restructed by state-owned enterprise.They had their unique properties such as the principal-agent chains extend.Then how sensitivity between the changing executives in the listed companies of our country and enterprise performance? These problems were worth to research. Making a general survey of the relationship between the changing executives and enterprise performance at home and abroad,there was little study that use Chinese listed companies by foreign scholars. But from domestic scholars' research, most research were using old data,and mostly studied all the whole situation of listed companies, or only studied the relevance between state-owned enterprise or private enterprise's personnel changes and the company performance.They rarely did comparative analysis between state-owned and private enterprise. It needs to be objective and scientific from the angle of empirical to analysis the senior executives of changing differences between the Chinese state-owned listed companies and private enterprises listed companies.So we can find the existing problems in the constraints and incentive mechanism, for studing advantages, removing disadvantages in the state-owned listed enterprises and private listed enterprises.To provide necessary basis for establishing more effective constraint and incentive mechanism.The paper was based on the review, analyzed the relationship between the listed corporate executives changes and corporate governance from the principal-agent theory and the angle of corporate governance, discussed the situation of Chinese listed executives' appoint and dismiss.Further analysis the differences from Chinese state-owned listed enterprises and private listed enterprises's performance to senior management personnel changeable.In the empirical test, according to the Chinese listed companies' disclosure situation of the reason for replacement of senior management personnel,and in accordance with the concept of binding replacement,I screened Chinese listed company's data of executives changeable from 2007 to 2008, and according to the certain principle to choose as the control samples that without the company executives replacement.This paper selected a total asset net interest rates and earnings per share index, then choose the market competition variables, the company scale, asset-liability ratio, the share ratio of the largest shareholder and oversight variables.Through the situation with senior management personnel changable regression model for empirical research, the results showed that:the poor performance will lead to executives replacement,the state-owned enterprise's sensitivity of executives changeable to the enterprise performance is lower than the private enterprise. Senior management personnel changes will lead to a short-term increased significantly of the enterprise performance. According to the mechanism analysis and empirical test results, in order to strengthen the restriction of senior management personnel and incentive,the paper put forward relevant policy suggestions from strengthen internal control mechanism, perfecting manager market.This paper is divided into five parts. The first part is the introduction, mainly summary of the background and significance of this paper, and puts forward the future research problems and the papers whole framework. The second part review the research of the executives change's theory and the relationship between executives change and the enterprise performance from home and abroad,and analysis the difference between executives change and the enterprise performance.The third part is the theoretical analysis of the relationship between executives change and the enterprise performance. According to carding the basic theory of executives changes, comparison and analysis of state-owned enterprises and private enterprises' problems of senior executives appointment, summarizes the previous view of the relationship between executives change and enterprise performance, analyzing and proposed hypotheses.The fourth part is the empirical analysis,the data is from Guo Taian Database. Through the statistical analysis to test the hypothesis. The fifth part is the conclusion, Attribute the relationship between executives change and enterprise performance, put forward the corresponding policy recommendations and summarize disadvantages of the paper.