| Many Chinese private enterprises are still very young,so the founders still hold a major share in the company and also serve as a corporate executive,resulting in considerable concentration of power,which not only improves the efficiency of decision-making,but also increase the risk of decision-making.This paper has selected private enterprises listed on the New Third Board from January 24 th,2014 to June 30 st,2015 as the research object,to explore what impacts centralized management has on the investing decision of institutional investors,and the stability of these impacts under different market environment.This study found that when the actual controller serves as chairman and manager of the enterprise at the same time,combining the ownership,control and the management,the proportion of institutional ownership and the number of institutional investors in the top ten shareholders will rise.This shows that the centralized management has a positive effect on the institutional ownership.Maybe the actual controller has a political relationship and extended horizons concerning the investment,which are very important to the development of enterprises,so institutional investors show a preference to the centralized management.Further study found that,this positive effect will decrease with the improvement of the degree of marketization,which means in the western area of low degree of marketization,the positive effect of centralized management on institutional shareholdings will be more obvious,while in the eastern region of higher degree of marketization,the effect will be not obvious.The research of this paper shows the importance of centralized management to the development of private enterprises in China;especially in areas with low marketization degree,centralized management may be a better way of management.To a certain extent,this study makes up the deficiency of the new three board and other OTC market research in the literature. |
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