The Characteristics Of Control,Management Power And Company Performance

An important feature of the modern corporate system is the separation of ownership and management,and the issue of principal-agent issues arises.Because of the different interests between the owner and the agents,the contradiction between the two is also born.In order to relieve this contradiction,as the agent's management come into the people's vision,attracting the eyes of the researchers,and management-related theory is gradually enriched.And the power of management is a new area for scholars to explore.Regard to the role of management power,the management power theory focuses on its impact on the management's own pay,but in the real world,the management has a great responsibility for the operation and development of the company,so the management power is not only influence its own pay,But also act on company performance.As for the source of management power,management power theory believe that the management has a certain power itself,and use this power to safeguard their own interests.But according to the principal-agent theory,the owner is the power source of the company,in the modern companies,there are separation of ownership and management,so ownership has a decisive constraint on management.Through the analysis of management power,on the one hand,this paper explores the role of management power in the operation of the company.On the other hand,it explores the source of management power,and finds the fundamental relationship between the management rights and the owner 's control rights,also explore the impact of the exercise of the management power under the specific control rights.In this paper,literature analysis and empirical analysis are used to study the management power of listed companies in China from the perspective of principal-agent relationship,and focusing on the relationship between control rights,management power and corporate performance.This article first uses the method of principal component analysis to extract the comprehensive index of management power,and selects the three representative characteristics of control rights,such as cash flow rights,equity balance and control nature of rights,and on this basis,establishes the multiple linear Regression model to study the relationship between management power and company performance,the relationship between control power and management power,and the influence of control power on the relationship between management power and company performance.The results of this paper show that:(1)there is a significant negative correlation between management power and corporate performance;(2)the actual controller's cash flow and equity checks have a significant impact on the management's power,(3)the actual controller's cash flow rights will have a significant impact on the relationship between management power and corporate performance.The nature of equity checks and the nature of equity for management power and corporate performance are not significantly affected by management power;The relationship between the impact is not significant.