The Market Reaction Of Our Country Listed Company Executive Change

Company executives has a significant effect on the company, they play an irreplaceable role on the management of the company operation and development direction. Excellent executives can bring huge profit to the company and promote enterprise to move forward. On the other hand, If the company executives’ ability is not outstanding and he is reluctant to take on the leadership positions, the development of the company will get into trouble. This is obvious in the listed companies. The investors would focus on the change of executives of listed company. Although ordinary investors can’t participate in the company’s board of directors for executive change decision meeting, but they can use their capital and stock to express their attitude to the prospect of the company development.In this paper, we will research the market reaction of the executive change of our country listed company. This paper has divided into four parts, the specific research contents are arranged as following:The first part is introduction. This part mainly introduces the background and significance of the research. The scholar’s researches of the related study at home and abroad are reviewed, show that there is a divergence among the research results of scholars.The second part is defining the relevant concepts of changes to company executives and analyzing the related theoretical. Defining the relevant concepts of executive changes could be used to determine the range of the empirical research. Then we introduce the information asymmetry theory, prospect theory, transaction cost theory and efficient market theory. They are the theory supports for empirical research and analysis of this article. Finally, we analyze the factors of the market reaction.The third part is the empirical research. This part selects the listed companies of our country from 2010 to 2014, and uses multiple liner regression to quantify the factors of the market reactionThe forth part is the conclusion and the policy recommendations for research.