Research On The Relationship Between Executive Tenure And Corporate Performance Of Listed Tourism Companies In China

With the accelerating trend of economic globalization and increasing fierce competition in the market, the ratio of replaced executives in corporation is rising gradually. A study has found that, since 1995, the executive replacement ratio increased by 54% in North American, while increased by 70% in the world. In the first half of 2008, the notice of executive replacement of listed companies in our country reached 163 times. The tenure of executive is shortened gradually, which seems to be a new trend.For companies, the executive tenure both may create good performance, also may make the performance of corporation to reduce or even to a breakdown. Therefore, the length of executive tenure has become a new focus both in academia and corporate strategic management area in recent years. Although the relationship between the executive tenure and corporate performance is getting more and more attention of scholars both at home and abroad, empirical studies which relatively standardized are not much, and those studies have certain limitations. Especially, such research started late in our country, so the corresponding research results are few, and pioneering and authoritative literature is lacking.In order to explore the inner mechanism of the effect of executive tenure on the corporate performance, to determine the executive tenure reasonably and improve the corporate performance of listed tourism companies in our country, in this paper, choosing listed tourism companies in China as research samples, defining the research range from 2006 to 2013, basing on the perspective of strategic persistence, according to the logic "ask questions-analysis of the problem-solve the problem", using of the data from CSMAR database and annual report of listed tourism companies in China, and combining theoretical analysis with empirical research methods.The empirical results show that:(1) In the control of the executive age, whether shareholding, company scale and company nature, executive tenure of listed tourism companies in China has a significant effect on corporate performance, and with the inverted U-shape relationship. (2) In the sample range of this paper, the best executive tenure of listed tourism companies in China is six years. (3) In the control of the executive age, whether shareholding, company scale and company nature, whether the last year that executive in the position has a significant effect on corporate performance. And the last year that executive in the position, the corporate performance is lower than other years. (4) Strategic persistence plays partial intermediary effect between executive tenure and corporate performance of listed tourism companies in China.According to the conclusions, the author has obtained the enlightenment about the development of listed tourism companies in China. And at the end of this article, the author also points out the deficiencies of this research and the future direction of further study.