Study On The Influent Factors Of Executives Turnover From The Companies Listed On GEM Board

Since the GEM board opened on the October30,2009, it has showed characteristics of high issue price, high issue price-earnings ratio, and super act funds, At the same time, the executives begin to leave the company, and become more and more serious. By the October30,2011, the GEM board has released a total of172copies of resignation announcement,118enterprises appear senior management staff turnover, at a total of182people, among them,141people leave the original company completely, the other41people change their position.105of the turnovered executives hold the shares of the company directly or indirectly, the other77turnovered executives don’t hold shares of the company. So the majority of them hold shares of the company. The turnovered executives contains directors of the company, supervisors, managers, the secretary of the board, even the founder of the company. This phenomenon has aroused heated debate.The public generally think that high issue price, high issue price-earnings ratio, and super act funds lead to the executives’ personal wealth expansing along with the company’s stock price rising. In order to lock in the earnings as soon as possible, executives avoid the lock regular limit via leaving the company, thereby they can realize the purpose of early reduction. This is just the popular speculation, it lack heoretical and empirical evidences. This paper based on this focus, analyzed the influent factors of the GEM board’s executives turnover, found out the deep reason of executives turnover. Because some of the turnovered excutives hold the shares of the company, and some do not hold shares, therefore, this paper analyzed the influent factors of the shareholding executives turnover and non shareholding executives turnover seperately. At first, the paper summarized the domestic and foreign scholars’ research conclusion on executives turnover:they analyzed the influent factors of executives turnover mainly from the aspects of the operating performance of a company, the internal mechanism of corporate governance (including ownership structure and board characteristics),and personal factors of executives. Secondly, the paper described the GEM board’s present situation and characteristics in detail, which is used as the starting point of this paper, and then made the descriptive statistical analysis of the independent variable, and mainly analyzed the influent factors such as issue price, issue price-earnings ratio, super act funds, profitability, executives’ compensation and venture capital institution’s support, whose influence on the share-holding executives turnover and non share-holding executives turnover by using the logit regression model. Finally, the paper proposed the policy recommendations for further improving of the GEM board.