Empirical Research On Top Management Turnover And Operating Performance Of The Listed Companies Of China

Recently, some top managers of famous companies were turnover. In foreign countries the turnover of top management is also one of the most important issues in both stock market and corporate management. The relationship between the turnover of top management and the corporate operating performance is studied by collecting the data of the listed companies of China.Firstly, it's a general review on the research literatures related to the change of top management in and out of China, and introduces the classical principal-agent theory, the corporate control mechanism, the human capital theory and the corporate strategic management theory, and provides a framework for this paper.Secondly, it's an empirical analysis on the relationship between corporate operating performance and the turnover of top management. It's told that bad performance will cause top management changed very possibly. When the top management is forced turnover, the possibility of outside succession will be much greater. New top management doesn't seem to bring any substantial improvement in operating performance, but the operating performance will increase with outside succession.Finally, according to the conclusions, a general summary about the above findings and some preliminary policy recommendations are given. Some limitations in the paper and future research issues are also discussed.