Management Of Listed Companies Ownership Structure And Financial Performance Studies

Over more than 50 years, "the managerial ownership " has been the focus both in theory and business practice. With China's sustained rapid economic growth, the listed companies of China are gradually growing up. Managerial ownership attracts more and more attention because it plays an important role in the managerial incentive. Especially now that the first step of the stock reform in China has been basically completed, both the insid and the outside of the company are calling for the managerial ownership.Firstly, this article reviewed the theoretical basis which supporting the managerial ownership- the principal-agent theory, and introduced the origin, development and the major theoretical viewpoints of this theory. Then we reviwed the the main theories and hypotheses which put forward by Western scholars about the relationship between the managerial ownership and corporate financial performance. On the basis of empirical reaserch both in China and western countries, we analyzed the reasons that why so many scholars got the different conclusions. The author refered the studies of shareholding structure and determined to reaserch the relationship between the managerial ownership and corporate financial performance from the perspective of managerial ownership structure.The author set the 316 manufacturing enterprises from Shanghai and Shenzhen Exchange as the study samples and did a short period longitudinal study based on the panel data from 2004 to 2006 of these enterprises. Through factor analysis, correlation analysis, regression analysis, comparative analysis, we found that the rate of managerial ownership had a significant positive impact on the company's financial performance, and with the increasing of the rate, the impact had been strengthened. The ratio of the managerial ownership' value and the annual salary of the management had a most significant and powerfull positive impact on the company's financial performance. Although the other two structure variables did not meet the requirements of significant, they were very close to the significant standards. Therefore, we can conclude that there is a close relationship between the managerial ownership structure and the financial performance, and we must consider it during the process that we design the incentive mechanism to the management.