The Research On The Regulatory Effect Of The TMT Interlocking Network On The Effectiveness Of Shareholders' Incentives

From the director network to executives(TMT)interlocking network,in the present research of corporate governance,characteristics of the network is more and more prominent.Following the value investment,investment of shareholders should have a reasonable return.Taking measures to encourage shareholders to do the continuous investment,this is a reasonable trend of capital market.However,under the relatively complex of network characteristics,it need further discussion about whether existing shareholders policy achieves the purpose or not.So,from the perspective of shareholders' long-term and short-term incentive effectiveness,this article researches the adjustment effect of TMT interlocking network.Separate each link inside and outside,the existing research has become very common.Under the complicated social network structure,how about the adjustment of the network effect and how the network impact and influence the traditional corporate governance theory.The current research is rare,so the problem this paper researches is very outstanding.Under the perspective of social network,this paper empirically test TMT interlocking network influence the effects of incentive effectiveness of shareholders.TMT interlocking network could lead two different effects to shareholders incentive effectiveness:one is shareholders' interests on dividend comparison in the short term,the TMT interlocking network could exacerbate the bandwagon effect,triggering wealth bandwagon effect by raising price or other financial indicators;the second is shareholders' appreciation to the value-added of enterprise value,the TMT interlocking network could intensify the competition effect,encouraging companies to input dividends on research and development,paying attention to long-term capacity building and cultivating enterprises' core competitiveness,leading to knowledge competition effect.On the basis of previous research,researching shareholders' short-term incentive effectiveness based on the perspective of dividend policy,researching the shareholders'long-term incentive effectiveness based on the perspective of R&D,analyzing the adjust effect of TMT interlocking network on shareholders incentive effectiveness,theoretical model and mathematical model was constructed,research hypotheses are put forward based on the model.In the last,testing the hypotheses empirically based on the listed biological medicine companies' panel data of A shares in 2012-2014.The main research conclusions are as follows:firstly,in the short term,shareholders incentive effectiveness is remarkable;secondly,in the short term,TMT interlocking network told a positive adjustment to shareholders incentive effectiveness;thirdly,in the long term,shareholders incentive effectiveness is remarkable;the fourth,in the long term,TMT interlocking network told a negative adjustment to shareholders incentive effectiveness.The relationship between TMT interlocking network and corporate governance not only embodies in enterprise external governance network effects corporate governance,also reflected in the corporate governance mechanism dynamically affect network structure,and then influence the corporate governance performance again,it's a dynamic evolution process.Firstly,this paper identify and analysis quantitatively the influence of TMT interlocking network under the framework of dual network on corporate governance mechanisms,which provides a new important research perspectives for deeply understanding the particularity of corporate governance behavior in China's capital market.It also can from the deeper level explain the external governance environment of business decisions facing in the process of China's corporate governance transformation.Breaking the research difficulties of not seeing"networks" but "circles".Secondly,although some literatures mentioned the research on interlocking director network and corporate governance behavior,but more from the perspective of network structure,the political association and resource dependence.To the action mechanism of interlocking network and corporate governance,in particular,it lacks rigorous and systematic theory and empirical analysis on microscopic conduction mechanism.What's more important,this article is not simply copying foreign related research ideas and methods,and then put in China's data.