Firm Profitability, State Ownership, and Top Management Turnover at the Listed Firms in China: A Behavioral Perspective

37 Pages Posted: 4 Feb 2010

See all articles by Wei Shen

Wei Shen

University of Florida - Warrington College of Business Administration

Chen Lin

The University of Hong Kong - Faculty of Business and Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 3, 2010

Abstract

Using data from a large sample of the listed firms in China from 1999 to 2002, we find that firm profitability and state ownership are negatively related to top management turnover only when firm profitability is below target (measured by industry median). We also find that top management turnover has a positive impact on subsequent firm profitability when it occurs under performance below target, but has a negative impact when it occurs under performance above target. Lastly, we find that top management turnover under low performance has a positive impact on subsequent firm profitability when the state is not the largest shareholder, but has no impact when the state is the largest shareholder.

Suggested Citation

Shen, Wei and Lin, Chen, Firm Profitability, State Ownership, and Top Management Turnover at the Listed Firms in China: A Behavioral Perspective (February 3, 2010). Available at SSRN: https://ssrn.com/abstract=1547108 or http://dx.doi.org/10.2139/ssrn.1547108

Wei Shen (Contact Author)

University of Florida - Warrington College of Business Administration ( email )

Gainesville, FL 32611
United States

Chen Lin

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

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