Empirical Research On The Relation Of Managerial Ownership And Corporate Performance Of Chinese Listed Companies

With the development of split-share reform, during this time, many people talked about the managerial ownership mechanism. Due to the division of management and owning right, in order to solve the agent problem, the client should have a method to control the attorney act according the goal, which makes the best for the client. This method refers to an inspiriting and restriction mechanism, of which the managerial ownership is a kind.In this essay, the managers are defined as Directors, Supervisors and other executive officers. The corporate performance was instead by ROE and Tobin's Q index. ROE is an index of accounting profit system, while Tobin's Q is an index of corporate value system. Under this definition, this essay elaborates the relationship of the managerial ownership and the corporate performance from three different angles: the commission and agency theory, the human capital theory and the inspiration theory with its hypothesis. These are the basis of the empirical research.The Chinese listed companies'reports of 2004 threw daylight on the information of managerial ownership, corporate size, intangible assets and the corporate growth. So this essay chose 215 listed companies with on board of Shanghai stock exchange as the research samples to study the relationship of managerial ownership and the corporate performance. The result shows an indistinctive linear correlation between managerial ownership and the corporate performance. Then the results of next non-linear regression analysis show and distinctive non-linear correlation between the two, including the function models of ROE, Tobin's Q and the MSR. Besides that, the coefficients matrixes show that the effect of Profit Converging Hypothesis and the Self-defending Hypothesis exists in Chinese listed companies.The essay also finds out that there is an interval effect between the corporate performance and the MSR. When the MSR exists in (0, 27.58%), the corporate performance rises along with the addition of MSR. When the MSR exists in (27.58%, 88.09%), the corporate performance drops along with the addition of MSR. When the MSR exceeds 88.09%, the corporate performance rises along...