The Research On The Relationship Between The Managerial Ownership And Corporate Value Of China’s SME

This paper studies the relationship between the managerial ownership and corporate value of China’s SME with the empirical research methods. The empirical results of the relationship between managerial ownership and the value of the company of scholars mainly divided into:positive correlation, negative correlation, curve correlation and none correlation, while the above results are mainly based on the convergence of the interests of managerial ownership effect and the entrenchment effect. Scholars’findings about the relationship between the managerial ownership and corporate value vary because of the choice of the samples and processing methods.Different from the domestic main board market, managerial ownership phenomenon is common over the China’s SME board listed companies, and the management’s control over the company is strong if the proportion of managerial ownership is high. In this case, the managerial ownership may be detrimental to the value of the company. To verify this point of the view, we use the SME board listed companies in2007to2010for the sample regression model to empirical analysis, the evidence shows the presence of managerial ownership and Tobin’s Q as an indicator of corporate value of China’s SME board listed companies has significant negative linear relationship, but the managerial ownership and the corporate value does not exist a significant curve relationship.The study also find that the apparent deviation from the market indicators and financial indicators of the value of the SME board listed company, and ROE is not a significant dependent variable in regression. Other control variables as major shareholding (SHARE10)、firm size(SIZE)、asset-liability ratio(DEBT) are all negatively correlate with the corporate value. The restricted factor on the managerial ownership is beneficial to the value of the company, but may cause the internal division of the company’s management and affect the corporate value.Finally, the writer gives the relevant policy recommendations for the SME board listed companies:regulatory agencies strengthen supervision of the management of listed companies of SME board and give full play to the role of the independent director system in cooperate governance; give the management of listed companies appropriate equity incentive; further the introduction of the professional manger system of the SME board companies strengthen the protection of the small investors.