An Empirical Study Of The Influence Of Managerial Ownership On Corporate Transparency

In recent years,many countries broke out accounting information disclosure fraud cases frequently,which making the company managers come to realize the importance of enhanc ing the openness of information.So how to improve the transparency of the Company should be put on the agenda as soon as possible.One of the most essential feature of modern business is the separation of ownership and management,which causing a certain degree of agency problems and making agents be detrimental to the interests of company because of the pursuit of their own interests.Many researches show that as an excitation,managers holding shares can effectively reduce agency costs.This artic le selects the listed companies’ 2188 sets of data from A-share motherboard market on Shenzhen Stock Exchange as samples in 2010-2014,applying regression model based on Signaling Theory and Convergence of Interest Hypothesis,choosing Company Transparency as interpreted variables and Stock Reward,Managerial Ownership,Executives leave,The top ten shareholders ownership concentration as explanatory variables and Company Size,Debt levels,Return on assets,whether chairman and general manager hold ing a concurrent post as controllable variables.The concluding are as follows :(1)The listed companies’ managerial ownership and corporate transparency showed a significant positive correlation;(2)Management turnover motivation have a s ignificant negative impact on corporate transparency;(3)The larger,the better return on assets,the more good internal governance of companies are more likely to disclose information.Based on the above concluding,proposing some recommendations of increasing corporate transparency:(1)Establish reasonable ownership structures,such as determining the proportion of managerial ownership and the top ten shareholders’ ownership concentration;(2)Improve supervision,making information disclosure more standard;(3)Strengthen the credit qualities and the building of moral integrities of listed companies;(4)Establish a comprehensive set of system to evaluate the quality of information disclosure of listed companies as soon as possible.As for our country,because of the introduction of Management Stock Ownership Plans are latter,coupled with the internal governance mechanisms of listed companies are still not perfect,which making the issue of Company Transparency is particularly prominent.In order to increase transparency,when implementing the program of management equity incentive,our country should guide listed companies to use equity incentive reasonably.