Corporation Performance, Board Governance And Management Turnover

The turnover of executives of the listed companies on the Growth Enterprise Market (GEM, for short) during their tenure is an important phenomenon which needs to be researched deeply. That the turnover rate of executives of the listed companies on the GEM during their tenure is higher than the ones of main board listed companies is a common phenomenon, but also plays an important role on the development of the listed companies on the GEM. Then, what are the factors lead to the turnover of executives? Whether the company performance has influence on the executives’turnover?The essay researches the turnover motivation of executives under the background of the listed’ companies on the GEM. Based on that, according to the data of2010-2012GEM listed companies of China, adopts multiple regression analysis method, examining the affection mechanism of corporation performance to management turnover. We find that, corporation performance have a significant effect on management turnover, that is, the lower the corporation performance, the more the number and the chance of the managers’ turnover; furthermore, this a more strength affect between corporation performance and management turnover in the companies which with higher effectiveness of board, that is, the more board size, ratio of independent directors, or board chairman and president is the same man, the lower the corporation performance, the more the number and the chance of the managers’ turnover. The reason of more strength effect of board chairman and president is the same man that the board chairman or the president is the founder of the company; they may acquire more profit by supervisory controlling the managers, so there is good board governance.This paper may have two research innovation points:first, the innovative research perspective. The existing study discuss the executives turnover rate mainly based on the listed companies of the main board, but the research on the objects of GEM listed companies of China is more meaningful; recent study explores the management turnover rate mainly from the view of the environment and corporation governance improvement, so the research of the corporation performance on the management turnover is overlooked although the company risk and some other corporation characteristics have been discussed. The paper discusses the influence of corporation performance on executive turnover, which not only complement the theory study about the effect of executive turnover, but also can improve the management system of the GEM listed companies in practice; second, explores the influence of executives’turnover on the perspective of corporation performance which are different from the views of environment, corporation governance mechanism and some other elements. To be specific, this paper examines the relationship between corporation performance and management turnover under the different board governance, the difference effect degree of corporation performance to management turnover. The findings show that the corporation performance can play an important role on the executives’turnover and moderated by the different governance environment.The full text is structured as follows. The first chapter illustrates the background and significance of the topic, defines the manager and the turnover, and then specifies innovation of this paper and insufficient.The second chapter describes the existing research from the point of external environment, corporation governance, characteristic of company and managers, provides theoretical basis for the research.The third chapter details the research hypothesis by means of theoretical logic analysis puts forward some hypothesis about the relationship among board governance, corporation performance and management turnover.The fourth chapter details the data source, study model and the variable design.The fifth chapter mainly’ details the empirical result analysis, includes unilabiate analysis, descriptive statistical analysis and correlation test. At last acquire the regression of the relationship among board governance, corporation performance and management turnover by the EVIEWS3.0software, and then has a detail analysis.Chapter six mainly includes research conclusions, some inspirations, limitations and development directions.