The Research Of Executives Resignation Problem In The Listed Companies On GEM

With the deepening of reform and opening up, China has get a rapid economic development, as a barometer of the national economy, the stock market is booming, especially in2009, the establishment of GEM, which is born into the world financial crisis and China’s macro-market adjustment, and with the enthusiasm of the early investors sought, continuously companies issuing and listing on GEM these two years, which form sustainable development of the market. GEM gives new opportunity to the emerging companies, especially high-tech companies, for funding that can’t be listed on the Main Board. However, in the second anniversary of the GEM market, there are new shares plunged, executives resignations, only issue not listed and so on. On the phenomenon of executives’frequent resign, whether the executives resigned as economic interests, or because of the poor performance of the company, and what influences the proportion of executives to resign, all these issues become the focus of everyone.In this paper, we based on the study of executive changes domestic and foreign, combined with institutional context and theoretical analysis of GEM, attempt to find the factors affecting the executives to resign on GEM focus on the management characteristics and business performance. We use the companies that listed on GEM by the end of2010for the study sample, by selecting executives age, salary and equity ratio to measure management characteristics, net profit growth rate and net cash flow per share to corporate performance, after regression model we finally prove that:average executive salary, net profit growth rate that on behalf of company performance and net cash flow per share significant impact on whether executives of listed companies on GEM resignation. average executive salary, net cash flow per share and asset-liability ratio significantly affects the proportion of company executives to resign on GEM.