The Listed Company Executives Factor Analysis

Corporate executives are essential for the development of enterprises. Their styles of speech, behavior and thought have direct impacts on the uprising or down falling of an enterprise. Abnormal and frequent changes of management team are not conductive to long-term development of enterprise, affecting the production, operation and achievement of enterprise in a lot of aspects. Thereby harm the interests of shareholder in the market. The existing literature mostly concentrated on the study of the effect of the performance and governance structure on the turnover of CEO or chairman and few on the other person of the management team.GEM market of China has different characteristics from the main board market. The listed companies are mostly private small or medium scale enterprises, accompanied with large cheap stocks held by senior management team. After IPO, the worth of these people skyrocketed for the prices of these stocks get great premium. The legal systems of China about the transfer of the restricted stocks spur the resigned willing of senior managers to transfer stocks to cash.This paper focuses on the factors affecting the turnover of management in the GEM market of China. After collecting a lot of information, we adopted descriptive statistics analysis and regression analysis to do demonstration analysis of the influence factors of management turnover in GEM listed companies of China. Then we built the model of management turnover in GEM listed companies of China. The result of research shows that senior managers do have motive to resign to transfer their stocks to cash. What’s more, we find that the same factors may have different influence in GEM listed company of China. For example, the higher ROE and PE ratios, the greater willing management to resign, contrary to the other markets.