Analysis The Motivation And Consequences About The Senior Management Turnover Of Qinghaichuntian Science And Technology Ltd.

With the rapid development of the marketization process in recent years,the competition is becoming more and more intense among various enterprises,which requires higher and higher management skills for the senior executives.The data shows that the changing proportion of senior executives is increasing in Chinese companies.It has obvious China characteristics in State-owned enterprise compared with the developed country,but there also are many problems such as the property right,principal-agent,state-owned property and authority decision.Although the government has taken many measures to promote the management system reformation,it hasn't reached the level of perfection.At the same time,the system of separation of ownership and management rights can enable the combination of owners and managers to play the best value in the modern enterprise system,but there are also problems of the principal-agent.The business executive,as the leader of the company,plays an important role in the company strategic decision making and management.However,the executives are the object of corporate governance due to the problem of principal-agent.Generally speaking,the corporate governance implemented by executives will be reflected in the business performance,which will be a standard for shareholders to measure the company's internal governance efficiency.Therefore,the executives play an important role in the company development.What's more,the change of company's executives has an important influence on the business performance and future development strategy.With the gradual deepening of globalization,the increasingly fierce market competition has also promoted our company's governance to be closed to standardization high efficiency.Therefore,changes in senior mangers have become an inevitable trend.By studying the causes and consequences of changes in senior managers could judge whether the changes of senior managers have a positive or negative impact on company governance.It can not only provide a certain basis for measuring the level of internal corporate governance efficiency,but also can provide targeted choices in improving the internal governance structure of the company,improve the lack of corporate governance structure,and promote the healthy and orderly development of the company.Meanwhile,analysis the existing problems of the company governance will help to improve the company governance and mechanism continuously.Therefore,this paper bases on the motive of change of senior executives such as equity structure theory and Scapegoat theory,and review of domestic and foreign scholars' existing research systems,uses the case analysis method and comparative analysis method under the economic institutional transition background in China.Qinghai Spring Medicinal Resources Technology Co.Ltd is taken as an example to study the impact on changes of senior managers.The research shows that the impact of changes of senior managers on this company is mainly reflected in the following aspects :(1)Changes in senior managers have resulted in significant improvements in the company's performance;(2)The stock price of this company has risen after the change of senior managers and the market has responded well;(3)The change in senior managers has improved the internal governance and mechanism and optimized the internal control of this company.In spite of this,there are also some problems in the study.For example,changes of the company's equity structure have caused the company's main business to change,but it is impossible to clearly determine whether the improvement of the company performance caused by changes of the equity structure or changes of senior managers.By studying the causes and consequences of changes in senior managers in Qinghai Spring Co.Ltd,this paper believes that changes in equity structure leads to changes of the senior managers in this company,which improved the company's financial status in a short term.The article believes that the following steps should be used to standardize the future corporate governance.First,improving the executive performance evaluation system and establishing an effective patronage mechanism for the senior managers.Second,the directors should play a supervised role and optimize the internal governance of the company.Finally,balanced the equity structure to avoid excessive concentration of equity.This paper can help companies take a hard look at their internal governance issues by studying the relationship between executive changes and corporate governance.Improving the corporate governance structure has practical impact on promoting corporate development and protecting investors' legitimate rights.