The Impact Of Managerial Power On The Financial Performance Of Chinese Listed Companies

Management plays a central role in corporate governance,especially the general manager,who plays a decisive role in corporate strategy formulation and decision-making.It is of great significance to investigate the impact of managerial power on corporate performance,by means of that,corporate governance system and efficiency could be improved,corporate reputation,market competitiveness and corporate value could be enhanced.This paper takes the influence of managerial power on the financial performance of the company as the research object,selects the A-share listed companies in our country from 2014 to 2016 as the research sample,then uses multivariate regression analysis method to analyze the relationship.The results show that: managerial power has a significant impact on the financial performance of the company.But things are different in four dimensions,(1)There is a significant positive correlation between organizational power and financial performance.The combination of the two posts of the general manager and chairman has a positive impact on the financial performance;(2)The correlation between general manager’s term of office and financial performance is significantly negative,the title of general manager and financial performance did not show a significant correlation;(3)Of the reputation power,the part-time job of the general manager is significantly and positively related to the financial performance.There is no significant correlation between the general manager education background and the financial performance;(4)In the ownership power,the management shareholding ratio has a significant and positive correlation with the performance,and the dispersion of equity has a significant negative correlation with the financial performance.For these results,this paper puts forward the suggestions:(1)Expanding the size of the board of directors appropriately.At the same time,the general manager should be given a larger share of the discretionary power;(2)We should strengthen the supervisory system of management and cultivate a daring enterprise culture;(3)The introduction of senior executives could be focused on whether there is a wealth of part-time experience outside the company,and related qualifications may also be given priority within the company;(4)Appropriate to increase the management of the equity incentive to enhance their concentricity of the company.In addition,decentralized equity-backed companies should strengthen supervision over management and form effective restrictions.