Empirical Research On The Executive Resignation Motivation Of GEM Listing Corporation In China

As of 2013 December, the establishment of the gem has been more than four years, and China gem is also frequently appeared all kinds of special phenomenon, one of which is the GEM listed company executives turnover. In view of the special nature of Chinese gem market, domestic scholars also explains the impact of resignation of the enterprises through the stock in the short term changes before and after the resignation of senior executives. Due to the GEM market opening soon, this paper is still concerned about the problem of executives to resign,hoping that may come to different conclusions from a new perspective on the special phenomenon of the GEM.This paper in understanding the executives to resign based on the theory of cash and the resignation of the gem executives of the relevant data for in-depth analysis, found that executives to resign is not the general theory that the simple resignation for cash to executives, but there exist many factors. This paper from the perspective of active abdication, from October 2009 to December 2013 China GEM listed companies as a sample, deeply researches from the core competence of the Corporation, governance mechanism of enterprise incentive mechanism and external system arrangement of four aspects of executive resignation, and draws the conclusion: GEM listed companies annual average core competence, executives shareholding, executives stock market salary ratio and executive turnover passengers a significant negative correlation relationship. The resignation of independent directors and the number of executive turnover passengers significant positive correlation; stock average return rate on executive turnover passengers had no significant effect, the assumption does not hold. The results show that the gem executives quit phenomenon is trade-offs and game between the enterprise core ability, governance mechanism and incentive mechanism, rather than simply to resign for cash, which is executives take the initiative and rational choice results in this paper concludes.The innovation of this paper is the resignation of senior executives resign from the perspective of motivation from the analysis: the variable into the core competence as one of the main reasons to explain the executives to resign; for the first time to the resignation of independent directors as a governance mechanism in the number of variables, and the empirical results of independent directors resigned number have a significant impact on the probability of executives to resign.