Human Capital Liquidity,Executive Turnover And Performance Improvement

Executives are an important human resource for an enterprise.Executive change is not only a key force that constrains executives,but also a decision of the company that is related to future strategies and production and operation trends.In order for the executive change to really work,companies must find a suitable executive successor.Whether they can find a suitable executive successor will not only affect the company's decision to make executive changes,but also affect the executive change.The effectiveness.The flow of human capital leads to different supply of talents in different regions.Therefore,in different regions,the range of successors that companies can choose will be different,and the difficulty of choosing the right executive successor will also be different.So,will the flow of human capital in the region affect the behavior of companies replacing executives and changes in performance after changes?This article takes listed companies as the research object from 2003 to 2017,and empirically investigates whether the human capital flow in the region will affect the decision-making of the company's executive change,and further compares the regions with different human capital flows,Whether there will be a difference in the performance improvement after an executive change.The study found that:(1)Whether it is the chairman or the general manager,the greater the inflow of human capital,the greater the probability of change,and the greater the outflow of human capital,the smaller the probability of change.The results also show that the impact of regional human capital flows on the change of the chairman is greater than the change of the general manager;(2)From the group regression results,in the region of net human capital inflow,the change of the chairman has no significant impact on the current performance But it can improve the performance of the two periods after the change.In the region of net outflow of human capital,the chairman 's change has no impact on the performance of the current period or the performance after the change.(3)From the group regression results,in the region of net human capital inflow,the change of general manager did not have a significant impact on the current performance,but it can improve the performance of the two periods after the change.In the region of net outflow of human capital,the general manager Changes cannot significantly improve business performance.The research in this article enables everyone to understand the impact of regional human capital flows on the change of corporate executives,expands the research perspective,and enriches the relevant literature system.The effectiveness of executive changes will have an important impact on the efficiency of corporate governance.Due to the different human capital flows in different regions,the effectiveness of executive changes varies from region to region.In order to make talents flow freely and reasonably in various regions and reduce the differences in human capital flows in various regions,it is very important to establish a perfect market mechanism.This article also has certain practical significance.