An Empirical Study On The Effect Of Non-executive Directors' Turnover On Cost Stickiness

Changes in senior management will result in the disruption of organizational relationships in the company's Central Plains,and various management methods will also change as managers change.Cost control is a very important part of business operations,and its policy decision-making will also be changed,which will cause the company's original stable cost stickiness to change.Although the cost decision is made by the executives,the non-executive directors also play an important role in the impact.Therefore,in order to ease the internal principal-agent conflict during the company's senior management changes,the new executives and non-executive directors should be clarified together.The logical chain of decision-making influence.In this paper,firstly,the relevant researches in China and foreign countries are combed,and based on theoretical analysis of the issues,reasonable assumptions are made,and sample data of companies listed on the China Main Board in 2011-2016 are used to verify hypotheses through multiple regression.The empirical results verify that the cost stickiness is common among listed companies in China,and that the cost stickiness of executives changing companies becomes more serious than before.However,non-executive directors have no direct effect on cost stickiness,and the ratio of non-executive directors to corporate costs is sticky.There is no significant correlation;by distinguishing between CEO change and chairman change impact on corporate cost stickiness,it is found that compared to the change of chairman,CEOs change firm's cost stickiness to a greater extent,and new CEOs cause sticky corporate costs to increase,and this The degree of aggravation will be even greater.After joining the non-executive director as a moderating variable to check its supervisory effect,the higher the proportion of non-executive directors,the lower the cost stickiness change caused by the new senior executives,and the non-executive director can play an effective regulatory role.The impact of the new chairman will be even greater.Compared to the new CEO,the new chairman is under the influence of the non-executive director.Although the stickiness of the company's cost is still increasing,the degree of aggravation will be smaller.According to empirical results,the optimism of the new executives directly adds to the company's cost stickiness.The non-executive director's supervisory role suppresses the irrational decisions of the new senior executives and can indirectly reduce the company's cost stickiness.Both executives and non-executive directors affect corporate cost stickiness.They can optimize the structure of the board of directors,improve the appointment and dismissal mechanism of senior executives,formulate reasonable performance targets,effectively integrate the interests of the two together,and reduce the principal-agent conflict within the company..