Study On The Relationship Between Managerial Ownership And The Performance Of Small And Medium Enterprise Board Listed Company

As a kind of incentive means, managerial ownership have been widelyrecognized and promoted in the western developed countries. In the split sharestructure reform and other factors, China listing corporation managerial ownershipincentive is becoming more and more popular. Because of China’s SME board listingtime relatively late, and the managerial ownership is more common as themotherboard, so this paper choose board small and medium-sized listing Corporationas the object of study. After exploring the causal relationship between the managerialownership and corporate performance, the study explores the correlation relationshipfrom the proportion and structural factors on the performance of the company further,and provide some useful suggestions for management stock incentive policy of thesmall and medium-sized enterprise board.This paper reviews the related basic theories on managerial ownership, dividinginto correlation theory and causal theory, then summarizes the research of managerialownership and corporate performance of domestic and international relevanttheoretical and empirical literature. Finally, the paper divides into two levels ofcausality and relevance to study the influence of managerial ownership on corporateperformance and chooses the small and medium-sized listing Corporation form2004to2012as research samples, through constructing the causal model and thecorrelation model, using empirical analysis on the relationship between managerialownership and corporate performance, found:(1) The managerial ownership have incentive effect on firm performance.Managerial ownership is mainly as a means of incentive, by giving the managementequity, incentive for management, so as to improve the performance of the company.(2) The relationship between proportion of management ownership andcorporate performance is a nonlinear relationship. It increased first, then decreased,then rose again. With the increase in the proportion of managerial ownership,corporate performance started to grow significantly, reaching a certain proportion, corporate performance began to decline, until it reaches the critical value, it began torise again.(3) According to the analysis of the structure of managerial ownership, thestudy finds that the key personnel management ownership is essential, its effect on theperformance of the relationship also flies nonlinear. The more managerial ownershipstake number, the greater strength, the better the performance of the company. Thisshows that the fairness of the internal management ownership is conducive to theperformance of the company improved in a certain extent.