The Impact of Corporate Executive's Turnover and Corporate Governance on Firm Performance

• Main Authors: Yu-Man Lin, 林玉曼
• Other Authors: Chun-Po Chang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/25973936245424385376

碩士 === 大葉大學 === 管理學院碩士在職專班 === 102 === ABSTRACT The most important goal for a company is to maximize the benefit for its share-holders (owners). In order to achieve this goal and to keep a leading edge in the business world, a firm needs to find appropriate corporate executives. The purpose of this research paper is to examine the relevance between corporate executive's turnover and corporate governance on firm performance; as well as the degree of significance on firm effectiveness when corporate executives from various positions moved by investigating the listed companies’ corporate materials in Taiwan Stock Exchange Corporation (TSEC) from 2001 to 2012. The accounting performance, which included return on total assets (ROA) and return on equity (ROE), was used to analyze firm performance. The relationships between each variable were corroborated by multivariate regression. The imperial results indicate as follows: first, the coefficients of executive's turnover were all significant negative, which illustrate that after changing executive the companies’ show negative efficiency. Second, the coefficients of reasons for turnover were also significant negative, which means if executive's turnover was mandatory then it will have negative impact on company’s performance. The result is similar to vicious cycle theory. Third, the ownership structure showed .positive correlation with company’s performance. Fourth, in regard to the board of directors monitoring, the results reveal that when the board applies its supervision ability to the company, it will bring about a significant increase in company’s performance. Fifth, among the executive's turnovers, general manager’s move has the most impingement on firm’s efficiency.