What triggers top management turnovers in China?

P. Cheng, J.L. Li, Hin Sang Tong

Research output: Journal article publicationJournal articleAcademic researchpeer-review


Studies on management turnover in Chinese companies typically find that turnover decisions are associated with companies' accounting performance. Using a sample of Chinese company turnovers during 2000–2003, we disaggregate their net-earnings into core, recurring non-core, and other non-recurring components. Analyzing these earnings components, we show that turnover decisions for government firms are related negatively only to recurring earnings which consist of operating, administrative and financial expenses. Leverage also plays a significant role suggesting the concern that high debt levels may reduce the impacts of the Chinese SOE reforms. However, turnovers in private firms are associated with poor core earnings, a result similar with profit-maximizing firms in developed economies.
Original languageEnglish
Pages (from-to)50-87
Number of pages38
JournalJournal of Contemporary Accounting and Economics
Issue number1
Publication statusPublished - 2008


  • China
  • CEO turnovers
  • Earnings
  • SOE reform
  • Leverage

ASJC Scopus subject areas

  • Accounting


Dive into the research topics of 'What triggers top management turnovers in China?'. Together they form a unique fingerprint.

Cite this