Research On The Reasons And Effects Of Executives' Turnover Of GEM Listing Corporation

In our country,the GEM Listing Corporation executives are usually the founder of the company, and the departure will have a significant impact on the company and the market. While in the past, most of the literature focuses on the factors of the turnover of the executives, mainly from the performance of the company, internal governance and external governance, they got the similar conclusions: corporate performance, and corporate governance mechanisms, the GEM listed companies "three high" phenomenon lead to significant executives leave cash, legal system is not perfect and so on. Little of them focused on the influence of the senior executives' turnover on the capital market is rare. The existing research is mainly about the two aspects of the influence on the operation of the company and of the stock market, on influence of the stock market, there is no consensus in academic circles, I think that is because of the inconsistent sample selection, without distinguishing between executive is the main dynamic turnover or passive resignation, holding or not holding etc.We selected 2009 October 30(GEM Listing Date) to 2014 December 30,executive turnover data, using the logistic model and event study method to research the factors which would affect the departure of the executive turnover and the effects to the Chinese stock market.Finally,we draw the conclusion: 1.he proportion of shares held by the management has a significant nonlinear impact on the probability of management turnover in new listed companies;2.the higher of the PE,the probability of the management turnover is smaller;3.if the management gets more salary from the company,the probability of the management turnover is smaller;4.GEM listed company executives turnover on the stock market effect is not the information effect or the true effect, but the cash effect.