Executive Divorce,Ownership Structure And Enterprise Value Research

The marriage affair of corporate executives is not only about personal privacy,but also a public event with social influence.Nowadays,marriage change will not only damage the personal reputation and the image of the company,but also affect the physical and mental health and working status of the executives,and then affect the performance of the company.In addition,after the marriage of executives,the division of equity will inevitably be involved,which will cause major changes in the company’s equity structure,which will inevitably cause the dispersion of the equity structure of executives.In order to study the impact of executive marriages in listed companies on the company’s shareholding structure and on the company’s value,the author selected 40 executive marriages(including 39 sample companies)as of December 31,2018.Equity division(including actual controller status,changes in the shareholding of executives and their former spouses),analysis of the reasons and timing of equity changes in the sample companies,and the impact of the marriage of executives on corporate value(including positions,shareholder rankings),Equity concentration,board size,stock price,company performance,customer concentration,reputation,etc.).Then,through Kunlun Wanwei’s "A-share most expensive marriage change",a typical case,it analyzes the impact of executive marriage change on corporate value in more detail.Finally,it draws relevant conclusions and proposes strategies to reduce the impact of "sky-price marriage change" on enterprises.The research results show that:(1)The marriage of executives will affect the company’s equity concentration,customer concentration,reputation,stock price and company performance,as well as the turnover rate of executives and the ranking of the board of directors.(2)Marital property division caused by senior management’s marital change is not the only factor in the change of equity structure,but the amount of change in the share of marital property division caused by senior management’s marital change is much higher than that caused by other factors,and the shareholding structure caused by senior management’s marital change Changes have a certain lag.(3)The marriage change of Zhou Yahui,chairman of Kunlun Wanwei,has a negative impact on shareholder status,equity concentration,company performance,customer concentration and reputation.For companies to respond to the high-price marriage of executives,relevant strategies are proposed:(1)The executives of the company can sign pre-nuptial agreements or intra-marital property distribution agreements;clarify the equity arrangements and rationally arrange the corporate governance structure.(2)Investors should treat the marriage change of senior executives rationally and objectively,examine the company’s situation in many ways,and include the personal situation of senior executives in the scope of inspection.(3)For regulatory agencies,it is necessary to standardize “precise reduction of holdings”;improve the information disclosure system.