Empirical Research on Influencing Factors of Executives' Voluntary Turnover —Based on the Perspective of Industry Prosperity

Abstract

Business decisions and executive autonomy will be affected by the industry environment, especially the level of industry prosperity. Previous studies have shown that the industry prosperity is an important factor affecting the executive turnover, with the different influence degree under different levels of executive confidence and career attention. In this paper, the impact of industry prosperity on the decision-making of executive turnover is studied with the sample of Chinese listed companies from 2006 to 2016.The study found that executives are more likely to opt out actively in anticipation of a downturn in the industry, and the effect is more pronounced for non-overconfident executives and executives with stronger career attention. Further research finds that better corporate governance mechanisms, including higher equity balance and better regional institutional environment, can reduce the professional risks faced by executives and weaken the impact of industry prosperity on the executive voluntary turnover. In this paper, the impact mechanism of executive voluntary turnover is studied from the perspective of industry prosperity, which can provide reference for further understanding and solving related theoretical and practical problems.