An Empirical Study Of The Relationship Between Managerial Ownership And Corporate Value

With the enlargement of corporate developing size, the division between proprietary rights and operate rights is more and more obvious, and the property management of shareholders'control is also more and more difficult. So the enterprise authority turns from the owner to the manager, which becomes the problem most economists care about. Well then, it is the research purpose of the dissertation that what is the influence to corporate value of managerial ownership, who owns the decidable rights and operate rights at the same time.The relation between managerial ownership and corporate value can divide into none correlation, positive correlation, negative correlation and non-linear correlation. Managerial ownership is the proportion which the corporate controller owns, including directors'and managers'. The measurement of corporate value usually uses the Tobin's Q, which describes the corporate market value. Besides, MBR is also used by domestic researchers at one time to verify their remarkable differences. The dissertation uses the regression analysis by means of SPSS 12.0. There are for variables in the regression model——the proportion of biggest shareholder, whether the proportion of biggest shareholder is national share, leverage ratio and firm size.The dissertation chooses 140 listed firms in Shanghai and Shenzhen Security Exchange as research objects, which include agriculture, manufacturing and information industry. The calculation unit of 1120 samples is season, which from 4th season of 2004 to 3rd season of 2006. The research methods in this study are based upon statistic analysis, piecewise regression and original regression. The result shows that managerial ownership has a non-linear correlation with Tobin's Q——positive below 5% and above 15%, negative between 5% and 15% ,but it's positive with MBR. In addition, the empirical result shows that MBR can not replace Tobin's Q.