Discussion of “Top management turnover, firm performance and government control: Evidence from China's listed state-owned enterprises”

Hu and Leung provide extensive analysis regarding the link between top management turnover and firm performance in corporate business with intensive government influence. Their findings suggest that the turnover process is effective at eliminating lower ability managers in Chinese SOEs, and this mechanism is reinforced by government control. In this discussion, I suggest that due to data limitation, a bit of this empirical evidence is problematic. I also compare the fundamental logic of this paper and the opposite views in previous research.