Research On The Impact Of Ownership Structure And Enterprises’ Performance Over CEO’ Turnover

In recent years, executive changes have caused more and more attention, partly because of increased turnover frequency, for example,25%of the companies have experienced executive changes during the year2009to2013.On the other hand also because executives play a decisive role in the position in an enterprise, their behavior determines the trend of the future development of enterprises. They are ultimately responsible for the performance of the enterprise. To a certain extent, company executives’individual talent, management level and professional level often determine the development prospects of enterprises in the future. What’s more, executives directly influence the success or failure of the enterprise, which makes the research of executive changes to improve the effectiveness of corporate governance become meaningful and important.In this paper, we study the executive changes in the perspective of the performance of company and ownership structure. Based on a review of previous research results, we know that the corporate performance and ownership structure affects executive changes through different mechanisms, but we also need to pay attention to the different ownership structure may also make the performance of the company have differences on the executive change. In the performance of different circumstances, the influence of ownership structure on the executive change will be different. We assume corporate performance and ownership structure in addition to their effects on executive changes, but also the existence of a common mechanism influence executive changes. Based on this, this paper attempts to answer the following questions:the performance of the company is how to influence the executive change? What factors of the ownership structure affecting the executive changes? How is the effect? The performance of the company and the ownership structure is how affect executive changes together? Do various factors influence on the board chairman and general manager equally?Because top management change is often affected by factors such as the performance of the year before, so this paper uses the data of the year2008-2012to study characteristics of the company which occurred executive changes during the year2009-2013. This paper uses the descriptive statistics, packet sample T test, correlation analysis, Logit regression analysis and robustness test. The explained variable of this paper is changes which is0,1variables. The explanatory variable is performance of the company which measures by ROA and opr; ownership structure mainly adopts the ownership concentration ownership、the proportion of tradable shares and executive’s shares; using an interaction term to build a research frame which contains performance of company and ownership structure. Finally make the following conclusions:(1) Both the overall samples and groups of samples, company performance and executive changes is a significant negative correlation (2)Executives changes of the state-owned listing corporation are less sensitive to performance than the non-state-owned listing corporation (3) Ownership concentration doesn’t significantly effect on the executive changes (4)Executive changes are significantly and positively related to the proportion of tradable shares(5)Executive changes have a significantly negative correlation with the proportion of executive’s shares (6) The changes of chairmen is more sensitive to the ownership structure while the changes of general manager is more sensitive to the company’s performance.At the end of this paper, combining with the results of the actual situation in our country and in this paper, I come up with the following advices:optimize the structure of ownership further and dilute ownership concentration of the listing corporation; view the proportion of executive’s shares dialectically; establish employment mechanism and evaluation system effectively.This paper explores the influence of company performance and ownership structure on top management further, the points as follows:(1) Many scholars have studied the factors affecting the executive changes, this paper not only studies on corporate performance and ownership structure partly, but also joined the company performance and ownership structure.(2) The executive is defined as the chairman and general manager, but the specific duties of the chairman and general manager in the company is different and the factors affecting their turnover and the degree are different, so this paper separates the chairman of the board and general manager to study their differences.