Executive Stock Ownership Of Listed Companies In China And The Resignation Of Behavior Research

Since the opening of GEM Board more than a year, it not only has created amazing mythology of making the rich, but also come out much strange phenomenon which is that business executives leave the new listed company.Many foreign scholars have conducted research on executive turnover. They have found that there are many factors which causes the management takeover in public companies, such as business performance, corporate governance and the transferring of control right. In a developing country, there may be some different conclusions to the phenomenon of capital markets between China and foreign countries. This paper is written to find other factors that lead the management turnover.The results showed that the proportion of shares held by the management has a significant nonlinear impact on the probability of management turnover in new listed companies from 2006.1-2010.4. The very important reason for their turnover is that they can sell their shares and get huge gains. What's more, if the management gets more salary from the company, the probability of the management turnover is smaller.The theoretical contributions are the discovery of new factors of the management turnover. That is the proportion of shares held by the management, diluted IPO PE and the management salary.The current contributions is a good cautionary to the "Three High" (high price-earnings ratio, high issue price, high super raised funds) phenomenon in GEM board and SME board is a good cautionary. Because the "Three High" cause the management turnover in new listed company. The SEC needs to make a reasonable system to monitor the IPO process. Listed companies should develop a more reasonable executive compensation policy. So we hope through better remuneration policy for executives to improve operational efficiency, enabling the company to maximize shareholders' value.