Corporate Litigation,Reputation And Executive Turnover

In recent years,China has achieved good results in the construction of a market economy,and its people's material living standards have continued to improve.In this era,trade between different economic entities has become more frequent,the legal relationship between them has become more complicated,and conflicts and disputes have become more frequent.As an important subject of the market economy,the company also faces severe challenges.Data show that the average annual growth rate of litigation cases in China in the past 40 years has reached 10%,of which the largest proportion is civil and commercial litigation cases,and the fastest growing is economic cases.The rapid development of the economy has caused corporate litigation gradually increases.As a scandal,corporate litigation will have a serious impact on the company's reputation.In this case,what kind of response will the company take to calm down the storm as soon as possible and reduce the loss of corporate reputation,which has attracted the attention of many scholars.Studies by domestic scholars have shown that when companies respond to the reputational changes brought by corporate litigation,they will take actions such as company renaming and raising charitable donations.In the past two years,foreign scholars have pointed out that company litigation will affect the company's reputation,which will lead to changes in executives.At present,few domestic scholars discuss the relationship between corporate litigation and executive changes from a reputation perspective.This article refers to the research ideas of other scholars and conducts empirical research on the relationship between corporate litigation,reputation,and executive changes.On this basis,it further explores the influence of different types of political and legal conditions.The research methods in this paper mainly include theoretical research and empirical research.Firstly,the research results in three areas of corporate litigation,corporate reputation,and executive change were sorted out,and the related concepts in this article were defined.Based on this theoretical research,drawing on the research ideas of Xie Hongjun,Fu Chao and other scholars on the issue of corporate litigation,this paper puts forward the hypothesis about corporate litigation,reputation,and executive change.Based on the data of a total of 13,435 Chinese listed companies from 2009 to 2018,the hypothesis content of this paper was empirically tested using logit regression and propensity score matching method(PSM).The research results in this paper show that there is a significant positive correlation between corporate litigation and executive changes,and this correlation will change due to different political conditions and legal conditions.Specifically:(1)When the company is a state-owned company,the correlation between the company's lawsuit and the change of executives is more significant;(2)When the company's executives have a political background,they can effectively resist Risks of executive changes;(3)When the company's legal environment is worse,the degree of economic loss caused by company litigation is more uncertain,and executive changes are more significant;(4)When the company's legal consultants are more well-known,The more serious the company lawsuits that failed to contain,the more significant the executive change.The research conclusions of this paper have certain enlightening effects on the managerial market supervision system,the construction of socialist rule of law,the ability of senior management risk management,and government supervision.