The Value of CEO Social Backgrounds for Chinese Listed Non-State-Owned Enterprises—An Evidence of CEO Turnover

Abstract

We find that in Chinese listed non-state-owned enterprises (non-SOEs), if CEOs have political affiliations or family connections, their jobs are securer with poor firm performance and there is a synergistic effect of the two social backgrounds on CEO turnover-performance sensitivity (TPS). Politically affiliated CEOs’ face lower TPS if they are in superior performed non-SOEs, economic downturns, or non-SOEs with politically affiliated other managers. However, no such effects are found in listed SOEs.