The Impact Of Top Management Turnover On Corporate Technological Innovation

In August 2016,Premier Li Keqiang stressed in the national science and technology award conference that "innovation must be placed in the overall position of national development,and stimulate the enthusiasm and potential of Chinese enterprises to enhance the value of enterprises through the innovation in the context of rising human capital and international competition." Large number of quality companies abroad are crowding into our country,the competition hots up today,more naked before the enterprise survival and the development pattern of relying on resources assembled and demographic dividend has been eliminated,the only option before us road is vigorously promotes the development of innovation,using innovation to drive economic growth,using innovation to promote enterprise transformation.The top management is both the leader of the company's development direction and the maker of management strategy.The vision,motivation and behavior of senior managers greatly influence the technological innovation activities of enterprises.When managers are at risk of being replaced,they need to improve their performance in the short term to prove their ability.This preference for short-term performance is bound to lead to a reduction in the investment of technical innovations that are longer and more uncertain.Executives change as the company's internal major personnel changes can also affect the company's innovation strategy execution level and efficiency of innovation resources organization,technology innovation resources low conversion rate of serious consequences.This paper focuses on the manufacturing enterprises listed on the Shanghai and shenzhen stock exchanges.Using the data of the three years of 2011-2013 to study the impact of top managers turnover on enterprise technological innovation.The results of the study show that after the change of senior executives,in the case of information asymmetry and short-term capital gains preference of stock market investors,Succession executives tend to start with myopic logic,magnify the short-term surpluses of enterprises to alleviate performance pressures,and thus reduce research and development expenditures and reduce technological innovation activities.Executives change under different situation,further analysis found that,compared with the former voluntary redundancy company mandatory changes have taken place in the company,the negative impact of enterprise technology innovation is more outstanding;The change of the externally introduced successor has a more significant negative impact on the technological innovation of the enterprise than the internal promotion of the executive successors;In contrast to the change situation that is restricted by the administration of the successor,the change situation of the successor and the President and the general manager will be relatively moderate to the negative impact of the technological innovation of the enterprise.On the above research results,we put forward to strengthen enterprise internal governance mechanism,strengthen enterprise for in recognition of the importance of technological innovation and change in executive period tighter policy Suggestions such as investment decision-making process.