Study for Motivation and Effects of Executive Resignation in Listed Company
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| Title | Study for Motivation and Effects of Executive Resignation in Listed Company
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| Author | Tingqiu Cao Guangli Zhang |
| Organization | School of Economics Shandong University ,250100 |
| Email | tqcao@126.com |
| Key Words | Executive Resignation; Growth Enterprise Market; Corporate Governance |
| Abstract | As the executive is an important part of company structure, their resignations have huge impacts on company management. Therefore the collective resignations in the growth enterprise market attract much attention from the community. Under this background, this paper studies the characteristics of company which resigned executives worked at, the effects of executive resignation and the motivation of their resignations. By our empirical analysis, we find that the possibility of executive resignation is high in the company with overvalued stock and bad performance; There are more resigned executives in family firms and in the firms with high issue fee; The market negatively responses to the resignation events and this negative effects are more obvious for share-holding executive resignation. Compared with executive resignations in small and medium enterprise?market, we find that market expresses high expectation on arbitrage-oriented motivation for the executive resignation in the growth enterprise market and by constructing the arbitrage motivation index for executive resignations, we enhance the conclusion that resigned executives in the growth enterprise have strong motivation for arbitrage. Our study provides direct evidences to improve the growth enterprise market. |
| Serial Number | WP115 |
| Time | 2011-10-27 |
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