| With the continuous expansion of the scope of application of modern company system,the separation of ownership and management rights of the company has become more and more important.The operation management of the company has been completely responsible to the professional managers,which is usually called the CEO.Shareholders and creditors are responsible for providing the funds needed for the development of the company.The CEO is the core human capital of the company and is responsible for the actual implementation of the company’s strategic decisions.It is also an indispensable part of the company’s business activities.It can be said that the talent and management ability of the CEO is the core factor for the success or failure of the company.Therefore,the selection of the CEO has become the top priority of today’s enterprises and one of the most important decisions in the development of the company.However,if the CEO conflicts with the interests of shareholders or the pursuit of value,it is likely that the CEO’s position will change.Therefore,this paper explores the impact of CEO changes on corporate value,can improve corporate governance structure,achieve long-term sustainable development of enterprises,improve market environment,strengthen market supervision,and have a positive impact on the soundness and development of domestic securities market.Moreover,it is also conducive to improving the internal governance mechanism of the enterprise,which in turn helps the company to select the best CEO candidate and formulate the correct CEO change decision.The value of the enterprise is directly related to the business capability and public image of the enterprise.Generally speaking,the higher the value of the enterprise,the more favorable information it can provide to investors,and the stronger the ability to continue to operate.Moreover,corporate value is not only closely related to the strategies and decisions made by the company itself,but also inseparable from the normal operation of the entire capital market.Therefore,the study of corporate value is not only to seek the source of sustainable development of the enterprise,but also to effectively maintain the long-term stability of the financial market.Enterprise value is not only a core force affecting the development of enterprises,but also an important indicator to determine the decision-making of investors,but it is also affected by many factors.Although scholars at this stage have been involved in a wide range of research on corporate value,most research on the impact of executives on corporate value is only at the executive compensation or incentive mechanism.Few scholars are solely from the enterprise.Executive characteristics such as executive change and other aspects to study its relationship with corporate value.As far as the current research status is concerned,scholars have affirmed the relationship between CEO change and corporate value,but the research on how CEO change affects corporate value has not yet reached a unified conclusion.Therefore,this paper uses the double difference method to focus on the research value of the company to study whether the change of CEO has an impact on the value of the enterprise.It has certain research significance,and is also conducive to further enrich the field of enterprise value research,and reminds enterprises to pay attention to the relevant high.The formulation of decisions such as selection and appointment.In addition,management defenses are more common in research involving executives,and more and more are incorporated into the research framework of corporate value.Management defense refers to the behavior of managers who choose to stick to their own positions and pursue their own utility under the internal and external governance mechanisms.As the most important executives of the company,when the degree of management defense is high,the CEO has a greater chance of seeking self-interest for himself,and the easier it is to run counter to the value pursuit of shareholders or the goal of maximizing the company.Therefore,the difference in management defense level will directly affect the severity of the internal agency problem of the enterprise,which leads to the impact of the CEO change decision on the self-interested motivation of the executives,which makes the enterprise value due to the CEO’s Differentiation changes due to changes.Therefore,the degree of management defense that the CEO has will inevitably play a role in the process of the CEO’s change affecting the value of the company.Therefore,adding a degree of management defense to the model of CEO change impact on corporate value will be more conducive to problem solving and other factors that affect corporate value.In summary,this paper takes China’s 2005-2016 12-year A-share listed companies as the research object,and uses the double difference model to study the impact of CEO changes on corporate value,and further examines the different management defenses.The difference in value of the company before and after the CEO change event.According to the empirical research of this paper,firstly,the value of the company will rise after the CEO change event.Second,compared with the enterprise that has not experienced the CEO change in the same period,the value of the enterprise after the change event has increased.Third,the management defense level of the management layer does not completely change with the enterprise value,and the effect of the CEO change event on the enterprise value will be more prominent in the enterprises with lower management defense level.Based on the above empirical test results,the corresponding conclusions and opinions are given.That is to say,when companies make CEO change decisions,they need to consider two aspects.First,whether the enterprise value is at a low level at this stage.Second,the level of management defense of the company’s CEO is in the same industry.If the enterprise value is at a low level but the CEO management level is also low,this situation may indicate that the current CEO has limited ability.If the CEO is changed in time,the enterprise value will generally improve;but when the enterprise value is high,the CEO manages the defense level.At a higher level,companies need to pay attention to the dynamics of executives.Once the self-interested motives of executives hinder the realization of corporate value maximization goals,the decline of corporate value will be inevitable.It is especially important to make CEO change decisions in a timely manner.However,if the value of the company’s management is low and the CEO’s management defense level is high,the decision to change the CEO’s decision does not have much positive effect on the improvement of the company’s value.Therefore,whether the CEO needs to change depends not only on the CEO’s ability to serve,but also on the industry status and business strategy of the company.Although the company does not need to make frequent CEO change decisions,it will seize the opportunity to change its future.The development still has a positive effect.In terms of innovation,this paper further expands the research on the impact of CEO changes on corporate value,and adds the intermediate variable of management defense to the impact of CEO changes on corporate value,to solve the problem of how to make CEO change decisions and realize enterprises.The issue of value growth has important reference and guiding significance. |
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