Study On The Impact Of General Manager Turnover On Corporate Performance In Real Estate Listed Companies

Corporate executives, the idiosyncratic human capital are responsible for the formulation, selection, implementation of corporate strategy, are playing a vital role in the corporate performance and long-term development of enterprises. General Managers, as the team leader of corporate executives, has a greater influence on the corporate executives and enterprise strategy. China’s real estate industry has developed rapidly in recent years, a large number of real estate enterprises go public, and the company gradually established a perfect principal-agent governance structure with general manager as the executive leadership team. Along with the development of the real estate enterprises in the past decade, the industry also brings about all sorts of problems, with the frequently renewal of enterprise general manager and executive members; Renewal of general manager impact on corporate performance has been the focus of concern from all walks of life. A large number of facts reveal that Renewal of general manager has devastating impact on corporate performance.Therefore, exploring the renewal of general manager in real estate listed companies and its impact on corporate performance, has important significance of guiding enterprise how to avoid the detrimental changes in general manager renewal brings to corporate performance.This paper first draw on literate from domestic and abroad, the current study combines general manager with other executives, mainly focus on two aspects of the alternation of executives: successor behavior and turnover effect. Due to the fact that different scholars adopt different researching methodologies, along with considerable variation on the definition of executive team. As for the research of alternation of executives, The confine themselves to the respective effect of successor behavior and performance, without analysis to the ways they effect. Based on the studies of literature, this paper sums up the research assumption that alternation of general manager has effect on performanceSecondly, through theoretical analysis of compete model that the turnover of executives effects performance in real estate listed companies, nine hypotheses are put forward. Based on data of Chinese real estate listed companies, using SPSS18.0 for statistics and regression analysis and validate the concept model hypotheses in the paper. The results show that the renewal of general manager in real estate list companies can bring adverse change to enterprise performance, general manager turnover leads to alternation of executive team so that the enterprise strategic continuity are destroyed, which will ultimately affect the performance of enterprise. Executive shareholding, the term of the retired general manager, and the age heterogeneity of the executive team has regulating effect to the executive team restructuringExecutive shareholding and the age heterogeneity of executive team has the effect of stabilizing management team, the longer the term of retired general manager is,the more possibility that the executive will reconstruct.Finally, based on the results of the empirical analysis, this paper summarizes that how the turnover of general manager in real estate listed companies’ impact on corporate performance, along with considering the features of real estate industry, putting forward approaches and suggestions on how to minimize the detrimental effects of the renewal of general manager brings on enterprise performance.