A Research on the Influence of Directors' Turnover on the Financial Performance of Listed Companies

The Growth Enterprise Market (GEM) in China has acquired a great development since its foundation. However, recently, more and more directors resigned from GEM listed companies. Directors are the important senior executives in corporate governance. The turnover of directors may have influence on the financial performance of listed companies. This paper studies this phenomenon and finds that director turnover and the financial performance of listed companies were significantly negatively correlated. The empirical results of this paper can provide some theoretical support for the government to improve corporate governance regulation, and can also broaden the perspective of fundamental investment analysis for external investors.