The Influence Of CEO Turnover To The Company Performance

CEO play a vital role in the development of the GEM Listed Companies.CEOare responsible for the operation of the company performance and they areresponsible to the board of directors.CEO turnover has an important effect on theperformance of the GEM Listed companies, and corporate performance is also theCEO turnover one of the important reasons. In theoretical circle, CEO turnover is oneof the important contents of the securities market and management research, becausethe CEO turnover is one of the important decisions is made by the shareholdersmeeting or the board of directors, and CEO turnover is also regarded as importantmechanism to restrain managers. However, since the GEM Listed Companies landingthe capital market, CEO turnover has been a problem. There is a big differencebetween China’s GEM market and the main board market.Because the GEM listed ina relatively short time, the company the size is smaller than the main board marke andmost of the company is a high-tech comany. At present, a large number of researchliterature focuses on the main market CEO turnover influence to the company’sperformance.However, there is little research literature focuses on the GEM company.In this background, studying the GEM listed company CEO turnover the influence ofenterprise performance is conducive to the GEM listed company governancemechanism research, and it is of great significance for the development of the GEMmarket in China.The research method by combining normative research and case study researchto explore the CEO turnover influence on company performance of the GEM ListdeCompanies. In the normative research, the literature review and theoretical analysis asthe foundation, through the methods of descriptive statistical analysis and summarizesthe development status of the GEM Listde Companies and CEO turnover. In the casestudy, the representative of the GEM Listed Companies CEO turnover the Wangsu Science&Technology Co.Ltd., Beijing originwater Technologies Co., Ltd, ShenzhenNetac Technology Co. Ltd., Beijing Water Business Doctor Co., Ltd. as an example,to study the turnover of CEO influence on company performance, and put forward thesuggestions. Finally, the author puts forward some shortcomings of this paper and theprospect for future research.This paper comes to the following conclusions:(1)The change mode of the GEM CEO will not have a direct effect on thecompany’s performance, but through the enterprise strategy, human resourcesmanagement, independent innovation ability, enterprise process and so on play a rolein the company’s performance.(2) The company’s strategic and independent innovation capability will have apositive impact on the enterprise performance of the GEM Listing Corporation.(3) Human resource management will have a certain impact on the performanceof the GEM listed enterprise.