Study on Executives' Replacement, Corporate Performance, and Board Characteristics of Real Estate Listed Companies

Due to the separation of the ownership and management for the corporation, shareholders need to supervise and constrain the management level through certain mechanisms. Corporate performance is the most significant sign to evaluate an executive's ability. If the performance is unsatisfactory, shareholders will clamor to replace the incompetent executive. Numerous executives' replacement phenomenon appears in the listed companies. We need to study deeply how the reason, frequency and number of the executive replacement will affect the corporate performance. This paper makes use of the data from real estate listed companies in China (years 2006 to 2011), stating the frequency and number of the executives replaced and corporate performance, using Empirical Analysis Methods to study the intrinsically linked among executives replacement, corporate performance and board characteristics. The results show that ROA and LOSS have significant negative correlations with executives replacement; LnBs, Ind and LSP have significant positive correlations with executives replacement; ROE has no significant correlation with executives replacement. Finally, according to the conclusions put forward, a feasible suggestion to the executives replacement for the real estate listed company.