An Empirical Study On Nature Of Ownership, Executives Shareholding And Organizational Slack

Now lots of Experts study on the organizational slack, but there are less of experts studyon it in our country. The only study is focus on the relation of integral organizational slackand the corporate performance and so on. They found that there is a positive correlationbetween organizational slack and corporate performance within a certain range, theinnovation performance and the ability to respond to environmental change is the same to theformer.Some domestic scholars research the relationship between organizations slack and thethree factors. The three factors are enterprise performance、innovation、R&D investmentand the ability to respond to environmental changes. The study found that the different formsof organizational have an different effect on firm. Now the most of scholars take theorganizational slack as independent variables and seldom take organizational slack as thedependent variable. We take the low-discretion slack、the high-discretion slack and thepotential slack as dependent variable to study it. We found that the employee stock optionplans has a great influence on them, and it is different in the different employee stock optionplans. Then we select all manufacturing listed companies in five years to test the twohypotheses we proposed.The empirical results show that: the more employee stock option plans the morehigh-discretion and the potential slack, and State-owned enterprises has a significant positivemoderating but it is no effect on the low-discretion slack.Therefore, this paper provides aconcrete and effective way for business managers to use high-discretion slack and potentialslack.