Study On Influence Factors Of Executives To Resign GEM Companies

The GEM is an effective supplement for main board market. It plays an important role for the perfection of capital market. As early as in the20th century60s and70s, the GEM has started to develop in foreign countries. After years of preparation, GEM is unveiled on October30,2009in China. GEM’s opening has produced a lot of millionaires, but the phenomenon of management "cluster" resign appeared at the same time. Many studies have shown that in order to liquidate as soon as possible, management would choose to resign. This paper takes the GEM management’s resign as the background, research the various influence factors of GEM management to resign.Management turnover received special attention in academia, because it is considered to be one of the important strategic decisions for the enterprises. By sort out the existing literature, it found that there are four views about the turnover of the management:corporate’s performance, corporate’s governance mechanisms, corporate’s other characteristics and management characteristics that usually as control variables. But the relevant literature about the special phenomenon that management to resign is still seldom. Considering the management resign is a form of management turnover, this article will be based on the existing research of the management turnover and give some modifications of the existing research according to the unique characteristics of the GEM’s companies. I believed that management as the behavior subject, he’s characteristics would be the main influencing factor of the decision to resign. Therefore this article mainly studies the characteristics of management influence on his decision to resign, in addition, respectively select the primary indicator of the corporate’s performance, corporate’s governance mechanisms and corporate’s other characteristics.In this paper, through the relevant theoretical analysis and empirical study, it is finds that the management of GEM corporate resigned within a year after IPO has the following features:there is a negative relationship between the corporate’s performance、the degree of IPO sponsor and probability of management to resign. But it is a positive relationship between the company’s stock concentration、the level of management shareholding、the degree of management education and the probability of management to resign.It is not a simple linear relationship between the age and the management resign, but an inverted U sharp relationship:before the age of43, with the growth of the age, the probability of management to resign is in increase, however after43, the probability of management to resign decreases with age. The results of this study provide evidence for our related system, such as reduction system of stock, compensation system, supervision system and so on.