Keywords
Citation
(2012), "2011 Awards for Excellence", Journal of Chinese Entrepreneurship, Vol. 4 No. 1. https://doi.org/10.1108/jce.2012.40504aaa.002
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited
2011 Awards for Excellence
Article Type: 2011 Awards for Excellence From: Journal of Chinese Entrepreneurship, Volume 4, Issue 1
The following article was selected for this year’s Outstanding Paper Award for Journal of Chinese Entrepreneurship
“The impact of founder turnover on firm performance: an empirical study in China”
Xiaogang HeSchool of International Business Management, Shanghai University of Finance and Economics, Shanghai, People’s Republic of China
Zhixin WangSchool of International Business Management, Shanghai University of Finance and Economics, Shanghai, People’s Republic of China
Lin MeiSchool of International Business Management, Shanghai University of Finance and Economics, Shanghai, People’s Republic of China
Yanling LianSchool of International Business Management, Shanghai University of Finance and Economics, Shanghai, People’s Republic of China
Purpose -- The purpose of this paper is to assess the immediate and lagged effects of founder’s turnover on firm performance, and test the moderating effects of enterprise scale and founders’ tenure on enterprise performance.
Design/methodology/approach -- The paper selects 307 listed companies founded by founder from the Listed Company’s Financial Database provided by the China Center for Economic Research. Based on 1,535 observations, this paper tests the relationship between founder turnover and performance by using the random effect model and the fixed effect model.
Findings -- It is found that founders’ turnover will have a significant immediate and negative effect on firm performance. There exists a lagged effect of founders’ turnover, but this lagged effect is not as strong as immediate effect. It is also found that the effect of founders’ turnover has been moderated by firm size and founders’ characteristics.
Practical implications -- Founders should choose an appropriate time of leaving when the firm’s performance has reached a level high enough for the successor to have a better chance of improving its future operations.
Originality/value -- Although some scholars have recognized the special role of founders and that enterprises’ performances are mainly determined by the founders, few have studied founders’ turnover on firm performance directly and empirically. This paper expands understanding of the founders’ departure behavior on firm performance.
Keywords: Business enterprise, Business formation, Business performance, China, Succession planning
www.emeraldinsight.com/10.1108/17561391011051135
This article originally appeared in Volume 2 Number 2, 2010, pp. 148-164, Journal of Chinese Entrepreneurship, Editors: Dr Jun Li
The following articles were selected for this year’s Highly Commended Award
“Anatomy of nascent entrepreneurship in China: A preliminary study from CPSED project”
Dan Long, Jun Yang and Jiayong Gao
This article originally appeared in Vol. 2 No. 2, 2010, Journal of Chinese Entrepreneurship
“An empirical study of mechanisms to enhance entrepreneurs’ capabilities through entrepreneurial learning in an emerging market”
Hao Jiao, dt ogilvie and Yu Cui
This article originally appeared in Vol. 2 No. 2, 2010, Journal of Chinese Entrepreneurship
Outstanding Reviewer
Professor Yuli ZhangNankai University, People’s Republic of China