Empirical Research GEM Listed Company Growth And Executives Leave

The GEM (Growth Enterprises Market) is an important link to improve China’s multi-level capital market system; its development gets high attention of people. However, these enterprises with high growth, high technology content and so have the development potential exposed top managers leaving messages frequently; these phenomena make people question the motivation of turnover. The top managers of enterprises are core power of enterprise management, it will play a key role to find the main reason of top managers’ turnover and keep the stability of top management team for the development of GEM and even the whole capital market.This article remarks from the realistic question, and proposes cashing out is not the main reason for the executive turnover. For deeper analysis of executives’ reason of turnover, this article selects the GEM listing corporation turnover top managers as the research object, the resignation notice and annual report are collected from Shenzhen stock exchange website. Based on the growth evaluation of the GEM listing corporation, to study the relationship between the GEM top managers’ turnover and the growth of the enterprises, in order to solve the stability and controlproblems of the GEM top managers.In the empirical study, we select270companies in China’s GEM as research samples, from the profit ability, the expansion ability and the innovation ability3dimensions8indexes by using factor analysis to evaluate growth of the companies comprehensively, and regard the growth score as an independent variable in follow-up study.Secondly, we adopted linear regression method demonstrate the GEM corporations’ growth effects on top managers turnover. The result of the research shows that GEM listing corporations’ growth is negatively associated with turnover within the top management team. Top managers’ turnover rate reduces with the increase of the growth score, the better growth, and the lower turnover rate. In general, the growth of the GEM corporations has significant influence on top managers’ turnover intention. Then, we verified that the companies with higher growth scores have no significant difference in turnover rate before and after listing, while the companies with lower growth scores have significant difference. It certificates growth can explain top managers’turnover phenomenon to a certain extent.Finally, based on the empirical research results, this paper puts forward some beneficial suggestions to preserve the top managers in GEM listing corporations, and points out that the limitations and future research directions.