Empirical Study on Impact of Private Companies’ Founder Characteristic and Completeness of Corporate Governance Mechanism on Professional Manager Succession
WU Lidong，DING Haojie，WANG Kai
1. Nankai University, Tianjing，China；2.Collaborative Innovation Center for China Economy，Tianjing， China
Abstract It was noticed that the founder characteristic and the formalization of corporate governance mechanism of a private company played a pivotal role in its selection of leadership succession pattern. Based on the empirical study of Chinese listed private companies, we found that the founder characteristic of a private company negative relates with its decision to employ professional managers. Furthermore, we found that the formalization of corporate governance mechanism has up-regulated effects to negative correlation between founder characteristic and professional manager succession. A private company can significantly reduce the negative effects of founder characteristic upon professional manager succession by improving its formalization of corporate governance.
2016, Vol. 13 
