AN EMPIRICAL STUDY OF TOP MANAGEMENT TURNOVER IN CHINESE REAL ESTATE INDUSTRY

Abstract: This paper investigates  the factors  which influence  top management  turnover  in the Chinese real estate industry. The three main announced  reasons for top management turnover  are occupation  mobility 、 expiration  of the term and quit. In the empirical analysis, I find that three statistically  significant reasons for turnover are firm size 、 turnover  of first shareholder  and proportion  of independent  director.  Furthermore,  I study  how  firm performance  affect  top  management  turnover.  This  paper  uses  two different  firm  performance  indexes.  One  is financial  index-ROA  (Return  on  asset). The other is stock index-EPS  (Earnings per share). Significant  negative relations are found between total chairman turnover and earnings per share and lagged earnings per share.