Abstract
In our country, the GEM Listing Corporation executives are usually the founder of the company, so the departure of them will have a significant impact on the company and the market. While in the past, most of the literature focuses on the factors of the turnover of the executives, the influence of the senior executives’ turnover on the capital market is rare. We selected executive turnover data from 2009 October 30 (GEM Listing Date) to 2014 December 30, using the event study method of the Chinese stock market effect, and drawing the conclusion: GEM listed company executives turnover on the stock market effect is not the information effect or the true effect, but the cash effects; although executive turnover will produce cash effect on the market, after calculation, according to incomplete statistics results only about half of the executives is in cash precise turnover, cash index is not high. So the conclusion is that resignation of senior management cash only part of the phenomenon, but it is enlarged by the market, having obvious effect of cash.
Highlights
GEM is established for financing and developing of the venture capital enterprises, small and medium enterprises and high-tech industry enterprises and others
It is worth noting that the GEM Listing Corporation executives turnover phenomena do not just appear in this year, back in October 30, 2009 the first batching of 28 companies officially listed on the Shenzhen Stock Exchange, less than a month after the November 26, 2009, the new Ning logistics (300013) released Mr Sun Bing resigned as an independent director of the company’s announcement, the GEM Listing Corporation executives departure of cash are rampant
It can be seen that the stock price is not significantly affected by the senior executive turnover, which has neither negative information effect nor positive real effect. This is inconsistent with the previous research conclusions, inspired by Tingqiu Cao [6] is paper further divides the turnover executives into two types of stock ownership and non shareholder analysis, from Figure 2 we found in the t = 1 after the decline in the stock price from 3 days to tenth days are down, the negative effect is very obvious
Summary
GEM is established for financing and developing of the venture capital enterprises, small and medium enterprises and high-tech industry enterprises and others. (2016) Research on the Departure Effect of the Growth Enterprise Market Listing Corporation Executives. According to the Tai’an database, as of November 31, 2015, there were 314 cases of the GEM Listing Corporation executives turnover of China. It is worth noting that the GEM Listing Corporation executives turnover phenomena do not just appear in this year, back in October 30, 2009 the first batching of 28 companies officially listed on the Shenzhen Stock Exchange, less than a month after the November 26, 2009, the new Ning logistics (300013) released Mr Sun Bing resigned as an independent director of the company’s announcement, the GEM Listing Corporation executives departure of cash are rampant. Seeing that the GEM Listing Corporation executives departure phenomenon is very common, what problem will bring to the market is the investors and researchers’ common concern. We share the introduction of arbitrage effect of this new concept of the market and the effect of the market caused by focusing the market, a targeted analysis, pulling-in the new concept of arbitrage effect on the concentration of executives
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