Corporate Executive Change And Corporate Performance For Control Transfer

The improvement of performance after M&A is one of the goals of M&A.New controlling shareholders tend to work hard to achieve this goal,and the new controlling shareholders take management change as one of the ways to achieve this goal.In practice,does the replacement of senior executives really improve corporate performance?Before the M&A,the performance of the target company may affect the determination of the new shareholders to improve their performance.What does the target company's pre-merger performance impact on the replacement of senior management and the performance of the target company?A lot of political factors will have an impact on the transfer of control of state-owned holding companies,which makes the transfer of control of state-owned holding companies have a strong national characteristics.Based on China's special national conditions,state-owned holding companies are significantly different from other companies in the company system,such as personnel arrangement and supervision.Does the nature of property rights affect the relationship between executives' changes and target company's performance after the transfer of control rights?In this study,based on the transfer of control rights,I analyze and validate the relationship between executives' changes and company performance.The effects of the cash before M&A and the nature of property rights on the relationship between executives' changes and company performance are also analyzed.After the M&A of the company,it provides the basis for the integration of culture and realization of M&A goals.This article selects 174 listed companies(ie target companies)that have changed their control rights in Shanghai and Shenzhen Institutes between 2011 and 2015 to use the industry-adjusted financial performance as a sample.First of all,descriptive statistics,correlation tests,and regression analysis are used to verify the hypotheses.In the robustness test,each hypothesis was further validated by mean difference test and group regression.The research conclusion of this paper is: compared with the company whose executives have not changed,the company's performance in the year after the change of the company's executive control after the transfer of control rights has improvedsignificantly;compared with the company with good performance before the transfer of control,the performance of the company is poor.The positive effect of the change in management on one-year performance after the change is even more pronounced.Compared with non-state-owned holding companies,the state-owned holding company can strengthen the positive impact of the change in senior management on the one-year performance of the company after the change of control rights.