A Theoretic Analysis of the Impact of Managerial Turnover to Employees' Specific Investment

With the competition for human resource more and more severe in the modern society, turnover of a team has a negative impact on organizations. From the perspective of specific human capital investment, this paper considers workers can undertake specific human capital investment in the firm and in the manager employed by the firm. By models, under the conditions of exogenous and endogenous variable of managerial turnover, this paper researches the optimal contract design of enterprise, the influence of managerial turnover on the works' human capital investment, and the factors which affect the possibility of manger's turnover decision, etc. Based on the analysis, the paper gets some conclusions.