An Empirical Analysis Of The Impact Of Executive Replacement On Enterprise Innovation

As a major decision of an enterprise,senior management turnover will certainly have an impact on the enterprise.As the decision-makers and executors of the company,the general manager and the chairman have a more obvious influence on the enterprise.This paper studies the turnover of chairman and general manager in the senior management team to analyze its impact on the innovation ability of enterprises.When selecting data,this paper selects the data of all listed enterprises in A-share market from 2010-2016 and all industry data to make the research results more general and persuasive.At the same time,compared with the current research methods of related topics,this paper carried out method innovation.Using the propensity score matching(PSM)to analyze the problem.At the same time,this paper fully considers the fixed effect of the sample itself.After matching,we use panel Poisson regression to further analyze the impact of turnover of senior managers on enterprise innovation.The study found that after the replacement of the chairman or the general manager in the senior management team of listed enterprises,the innovation ability of the enterprise was significantly improved after the transformation,the replacement had a significant role in promotion the innovation ability of the enterprise.After establishing that the turnover of senior executives can significantly promote the innovation ability of enterprise,this paper analyze the mechanism of its influence.It is mainly analyze from the following aspects: the source of successor,Years,Age,Degree,academic,profession,fun back,oversea back,fin back,and the proportion of salary in the total compensation of all managers.According to the research results.The selection of senior executives with older age and higher education level during replacement can promote the innovation of enterprises.At the same time,the selection of senior executives with relevant titles also promotes the innovation ability of enterprises.The longer predecessor's tenure,the more innovation the enterprises can be after the change of senior management.The longer predecessor's tenure,through the replacement,the company to inject new blood,improve vitality.In the paper,it was found that the replacement of the chairman or general manager had a better impact on the innovation ability of listed enterprises if the successor came from inside rather than outside.The fact that the successor is an internal source indicates that he or she has a better understanding of the development and innovation of the company than the external source.In this the chairman or general manager's own characteristics are judged by the proportion of his salary in the executive team.The higher the proportion of his salary,the more confident he will be.Research shows that the higher the proportion of compensation,the higher the degree of inhibition on the innovation ability of listed enterprises.In this paper,the influence of vocational background,academic background and overseas background is not significant.Innovation as the most important driving force of social development,its importance can be imagined.By analyze the influence of the turnover of senior executives on the innovation ability of enterprises,this paper enriches the research on the innovation ability of enterprises.Moreover,a more comprehensive data sample and a more complete regression model were used to verify the promotion effect of executive mobility on the innovation ability of enterprises.The research significant of this paper lies in that,on the one hand,it provides a reference for enterprises to make the decision of senior management turnover.On the other hand,it provides a more perfect theory for Chinese stock market investors to verify the effect brought by the change of senior executives of listed companies.