Research On The Influence Of The Changes In The Marriage Relationship Of The Executives

In order to make investors have a more comprehensive understanding of the impact of the divorce of senior executives of listed companies in China,so as to provide policy advice for the follow-up decision in the face of the state of the marriage of senior executives,this paper makes use of the cases of divorce of senior executives of all listed companies from 2011 to 2016,and makes a multi-case study of the impact of the change of the marriage relationship on both internal and external aspects.The following conclusions are obtained from the summary and integrated description and analysis of relevant data:First,for executives,divorce can lead to a significant reduction in their personal holdings of the company,with consequences including a decline in shareholder ranking and a change in position,which can have a negative impact on the psychological level of the executive,affecting his or her working and decision-making patterns,and bringing a negative atmosphere to colleagues around him or her.On the other hand,the change of business leadership,the break up of the stable and balanced management network,the new leadership brings new opportunities and challenges,and the risks rise.Second,for the company itself,the division of shares that followed the marriage of senior executives not only led to a decline in personal ownership,but also led to a change in the corporate equity structure,a greater fragmentation of equity concentration,a decline in shareholding,a decline in shareholder ranking,and a decline in control,all of which had an impact on the position and influence of the divorced company's executives in the company,making the conflict more pronounced.It can also affect effective decision-making,and if divorced executives and ex-spouses are on the board,this may lead to new problems,such as the conflict over control,the relationship between the job and the situation,and thus affect the interests of stakeholders.After the change of the relationship,it has a negative effect on the company's performance,which not only reduces the company's valuation level and profitability,but also increases the volatility of the stockprice.This will not only cause irreversible damage to the company itself,but also bring huge property loss to investors and stakeholders.Third,changes in corporate relationships can cause volatility in market responses,and the intensity of such volatility is influenced by the characteristics of the executive and the divorce arrangements.When a senior executive is a woman,holds a full-time position at a company,is the company's number one shareholder,or is given nearly half of the stock of his former spouse after a divorce,the market's reaction to the divorce is more intense,and the impact on the stock price is more pronounced,making the volatility more intense,which increases the risk for investors.Finally,based on the results of the multi-case statistical analysis,this paper puts forward relevant policy suggestions from the perspective of enterprises and investors.At the enterprise level,risk prevention,clear equity structure,define board responsibilities,low-key handling of divorce,and seek appropriate time to publish information;At the investor level,include the personal marital status of the executive in the scope of investigation,treat the divorce of the executive objectively and rationally,understand the situation of the company in many ways and find ways to reduce the negative impact of the event.