Price To Earnings Ratio (PE)、irm Performance And Executives Turnover

Gem as the second capital market in China, is a specialized financing channel of the capital market for medium-sized enterprises. It is about4years since the gem’s opening in October of2009. During the four years, the gem has experienced speculation and suspicion, and even some people regard it as "a market of rich plate" or "wealth plate". All the suspicion is focused on one issue:the gem executives quit only want to get cash. Quitting for cash appeared along with the birth of the gem, but really the gem executives just as people said "they all quit for cash"? As everyone knows, the basic conditions for cash is "holding company stock", and they must turn over and reduce their company stock, these basic conditions must happen at the same time. However, we find that executives who holding companies’stock only occupy38.36%of all the gem executives, and only about1.9%of those executives want to turn over, the proportion of those executives is less. Thus the executives’turnover for cash is not very rational, but we also don’t deny that there are few in these executives want to quit just for cash.Executives as rational economic person in the market, they pursue the maximum of their own interests. It is said that the GEM market executives’ turnover is interested in their own interests. Because of the turnover’benefit is much more than their regular income, In another words, when executives’ regular income is less than their turnover’s benefit, turnover is their best chose. Otherwise, the probability of executives’turnover will reduce if the expected income is more than the executive turnover income, the ratio of executive turnover may be very small. The executive in-service benefits, turnover income are associated with the current stock market, and measuring stock investment returns is PE, so we regard PE as the main topic.Based on this, this paper selects the data of the GEM Listing Corporation from2010to2012as the sample, we use the multiple regression analysis method to test the relationship between Outcome of the reasonable PE and practical PE and executive turnover, through our study, we found that:the deviation ratio of executive departures has an important influence on executive turnover, there is a significant positive correlation between them. The bigger the deviation is, the more serious about executive turnover. At the same time, this paper introduced the performance of the company as the moderating variable, through the analysis of the data, we found that if the regulation level of performance is different, it has different influence. In the case of high performance, it plays a positive regulatory role between the outcome and executive turnover, that is to say, there are some executives turnover for cash.The research content of this article includes five parts:the first part is introduction, it introduces the research background of this article, research purpose and meaning, etc.; The second part is sorting, induction and summarization of the research literature at home and abroad; The third part mainly describes the source of data for this paper, the research hypothesis and research model and research variables; The fourth part is empirical analysis, this part uses EVIEWS5.0to analyze the collected data and test the hypothesis of the third part; The fifth part refers to the research conclusions and countermeasures, and the limitations of this article, the future outlook.There are three Innovation aspects of this paper:firstly, we use the empirical research method to analyze the perspective of the stock market to find the gem’s departure problems at the moment; Secondly, this paper regard the corporate performance as regulating variable, analyzes its influence on relationship between PE ratio deviation and executives; Thirdly, the advices about the gem market maker system, delisting system and related regulation system are innovative and practical.