A Study On The Eefecf Of CEO Age On Employee Turnover

As employees in companies gradually become younger,the competition for high talents is getting more and more intense,which is the critical reason of high employee turnover.With the development of the network information technology,the diversification of interpersonal communication is heavily enhancing and amplifying the negative effects of employees' turnover.Such a fact makes it more practical to study the employee turnover mechanism.Upper Echelon Theory finds that CEO demographic characteristics are the important factors affecting employee turnover.However,the research on employee turnover from the perspective of CEO age has not been reported till today.Therefore,the investigation on the decision mechanism of employee turnover behavior from the perspective of CEO age has both theoretical and practical significance.The effects of CEO age on employee turnover has two potential possibilities,i.e.,positive VS negative,however,each possibility has its own internal logic.As for the sample design,the paper adopts the existing statistical data and the questionaires to conduct data collection.The test of the hypotheses on the effects of CEO age and CEO-executive age gap on employee turnover is based on the 3036 firm-year observations collected from the A-share listed companies from 2011 to 2016,which consist of knowledge-intensive companies and labor-or capital-intensive companies.The verification of the hypotheses on the effects of CEO-employee age gap on employee turnover is based on the questionnaire data of 174 valid samples covering various regions in China.The empirical analysis by adopting the multiple regression analysis,the fixed effect analysis,and the variance analysis with SPSS23 and STATA12 has found the following results:(1)CEO age positively affects employee turnover rate;(2)Compared with the knowledge-intensive companies,the age of CEOs in labor-intensive companies has a stronger impact on employee turnover;(3)There is a significant positive correlation between CEO-employee age gap and employee turnover rate;(4)The proportion of the independent directors can moderate the relationship between CEO age and employee turnover rate positively.The greatest originality of this paper is the proposition and confirmation of a new effective perspective of studying the determination mechanisms of employee turnover:CEO age.The conclusions of this paper have enriched the research on the determination mechanism of employee turnover behavior,and developed the Upper Echelon Theory in China to a better degree.On the one hand,this findings of this study can provide guidance in selecting CEOs from the perspective of the board of directors and the shareholders;On the other hand,the findings of this study can help the CEOs at each age stage to discover their potential management defects and advantages derived from their age status,and to further improve their management effectiveness and efficiency.