Research On Driving Factors Of Managerial Entrenchment

With the in-depth study of agency theory, executive's problems had become a hot area of topics in international corporate governance. How to effectively avoid the emergence of entrenchment executive, and the Board can stay on competent executive and the replacement of an incompetent executive, so that the problem of managerial entrenchment have become the academic and business focus.Managerial entrenchment existence in practice and the lack of research in theoretical, making the research study has certain significance, through the analysis of existing literature of managerial entrenchment; Driving Factors were selected as an entry point by author. Because its were the root causes of managerial entrenchment, research on driving factors of managerial entrenchment, both from the practical point of view and the research of company's theoretical have certain space. Through a summary of existing literature this paper, the corresponding hypotheses, combined with the enterprise conducted semi-structured interviews with the final formation of the research questionnaire. Research and design stage through the issuance of questionnaires, the survey data, exploratory factor analysis and structural equation model analysis methods, concluded that managerial entrenchment, that led the driving factors, and tested hypotheses.This study reached the following conclusions:(1) the driving forces of managerial entrenchment were aggregated and a questionnaire was formed. Involved in domestic currently available to managerial entrenchment driving factor summary of content, combined with the actual research formed the driver questionnaire; the questionnaire has good reliability and validity. (2) build the management structure model of defensive drivers, through the exploratory factor analysis and structural equation model analysis, through analysis of data from 365 samples, the final study assumed 11 factors mentioned in the hypothesis have been tested, and this paper proposed three-dimensional degree of driving factor of managerial entrenchment structural equation model, and the driver model has a certain stability and consistency. (3) Puts forward the countermeasures and suggestions. By combining the actual situation in China, this paper put forward some countermeasures and suggestions to avoid executive managerial entrenchment.