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Empirical Analysis On The Relation Of Managerial Ownership And Corporate Performance Based On The Background Of Full Circulation

Posted on:2009-04-27Degree:MasterType:Thesis
Country:ChinaCandidate:J H ZhaoFull Text:PDF
GTID:2189360272970355Subject:Finance
Abstract/Summary:PDF Full Text Request
The study on the relation of managerial ownership and corporate performance is an ancient proposition in order to provide a theoretical basis for agency problem and equity incentive.Through the study on the relation of the managerial ownership and corporate performance,both domestic and foreign scholars don't draw consistency of the conclusions and think it is irrelevant (endogenous), significant positive or non-linear.The reason lies in the background of different markets, different assumptions, different data and so on. In this new background,this study can provide theoretical guidance for equity incentive and have a great practical significance.After the full circulation,the effectiveness of the stock market is enhanced and the share price reaction to the company's performance is more real. All the shareholders play more attention to the performance of the company shares in the secondary market. Management whose companys implement equity incentive will be more efforts to operate companies for the their held shares. Under the new market environment, this paper makes a detailed study of four questions: is there a significant positive correlation between the managerial ownership and corporate performanc?Is there any differences of the equity incentive effect between the two circumstances, which the ownership property of the the largest shareholder is tate-owned shares and the social legal shares is the largest shareholder.In which ownership structure will the relation between the two be stronger?What will the incentive effect of managerial ownership be under defferent corporate scale? This paper will provide necessary evidences for managerial ownership incentive implemented by different types of listed companies.This paper uses factor analysis to measure corporate performance.The rate of the managerial ownership is taken as explanatory variables.The company scale,equity structure and ownership property of the the largest shareholder are selected for control variable.This paper adopts the 2007 annual report data of 95 listed companies from Shanghai and Shenzhen Stock Exchange markets as the samples.Through factor analysis and regression analysis, this papaer gets the following conclusions:wholly speaking, the managerial ownership doesn't have a significant positive impact on corporate performance in listed companies.Managerial ownership does not have insignificant effect on corporate performance between the two circumstances, which the ownership property of the the largest shareholder is tate-owned shares and the social legal shares is the largest shareholder.Managerial ownership has a significant positive impact on corporate performance in the listed companies whose company scale are over 5 billion or whose equity are decentralized.When the rate of managerial ownership is between 0 to 0.078 percent,corporate performance declines with the addition of the rate of managerial ownership.When it is between 0.078 to 0.728 percent,corporate performance rises with the addition of the rate of managerial ownership.When the rate of managerial ownership is between 0.728 to 0.2 percent,corporate performance declines with the addition of the rate of managerial ownership.
Keywords/Search Tags:Managerial Ownership, Corporate Performance, Equity Structure, Factor Analysis
PDF Full Text Request
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