The Research On The Relationship Between Executive Shareholding Increase And Corporate Value In China’s Manufacturing Company

In China, after the Reform of the Split Share Structure have basically completed in 2006, a lot of large stockholders and executives began to increate holdings in stock market, research from the perspective of corporate value and industry has yet to be carried out in-depth. China is a big manufacturing country,on one hand, the manufacturing industry is in industry adjustment and upgrade period, there is a large room for improving corporate value; on other hand, in the all listed companies of executives holdings, manufacturing accounted for more than half of proportion that executive shareholding increase can or not bring benefits to corporate value, need us to be based on manufacturing company, and add factors of company feature to take further analysis of the relationship between executive shareholding increase and corporate value.The paper reviewed literature of executive shareholding increase and corporate value from both home and abroad, and then used relevant theories to analyze the status quo and influence mechanism of internal and external, and discussed the relationship between them by empirical research methods. Proposed hypotheses according to theories, and then selected manufacturing listed company what occurred executive holdings in A-share market from year 2009 to 2013 as sample, taking Tobin’s Q as the dependent variable, analyzed the impact on corporate value after executive shareholding increase. Then add absolute holding companies, state-owned enterprises, and high-tech enterprises as moderators, analyzed the interaction between those moderators and overweight effect.The main conclusions of paper are as follows:(1) the relationship between manufacturing industry executive shareholding increase and corporate value showed a significant positive correlation, executive shareholding increase capable of delivering good signal;(2) when the largest shareholder absolute control the company, its ownership structure will reduce the overweight effect;(3) overweight effect in state-owned enterprises is different from non-state-owned enterprises, in state-owned enterprises, overweight effect will be reduced;(4) overweight effect in high-tech enterprises is different from non-high-tech enterprises, in high-tech enterprises, overweight effect is less effective than in the non-executives.