Research On The Relationship Between Managerial Ownership And Corporate Performance From R&D Investment Perspective

Separation of ownership and management of modern enterprises, resulting in problemsthat goals of management and enterprise inconsistent. In order to solve the principal-agentproblem, many companies have adopted equity incentives to management. In academia,scholars also conducted extensive empirical research on the relationship between managerialownership and corporate performance. However, The current study limited to the relationshipbetween the executive ownership and corporate performance, and did not take into accountthe manager’s behavior problems. Under the conditions of executive ownership, managementcan improve company’s performance through R&D activities,in order to maximize their owninterests. This shows that it is not a single correspondence between the managerial ownershipand corporate performance, but there is a mediating effect of R&D activities. This article willintroduce R&D investment in the research on managerial ownership and corporateperformance relationship, trying to figure out the relationship among the proportion ofmanagerial ownership, R&D investment and firm performance.This thesis selects 261 listed companies in high-tech areas from Shenzhen A-sharecompanies as the research subjects, and adopts mediating effect analysis method, firstly tostudy the relationship between managerial ownership and corporate performance, secondly toanalyze the relationship between managerial ownership and R&D investment and finally tointroduce mediating variables R&D investment and analyzes the influence manner ofmanagerial ownership toward business performance.Through regression analysis, this thesis draws the following conclusions:(1) Hi-techlisted companies’ managerial ownership has positive correlation with corporate performance.Managerial ownership can significantly improve corporate performance. In addition,managerial ownership can dramatically promote corporate performance;(2) Whether it isstate-owned holding company or a non-state-owned holding companies, managerialownership incentive can generate positive effects toward enterprise R&D investment.(3)Chinese R&D investment of hi-tech listed companies has significant positive correlation withcorporate performance, and the proportion of managerial ownership still has a significantpositive correlation with corporate performance after joining R&D investment as a mediatingvariable. the mediating variables significant test proves that managerial ownership canimprove corporate performance through corporate R&D investment.Finally, this thesis makes summery toward the conclusions on the basis of theoreticalanalysis and empirical results listed above, makes brief elaboration toward the studylimitations and makes recommendation based on the conclusions listed above towardperfecting of the corporate incentives and making rational decisions on R&D investment.