Empirical Study On The Relation Of Managerial Ownership And Corporate Value Of Listed Companies

With the refinement of social division of labor,the ownership and management of the company are gradually separated.Company owners hope to maximize their own interests by increasing corporate value while company operators hope to maximize their own utility in the management of the company.When the interests of the company and the management’s personal interests diverge,the company operators may infringe on the interests of the company and harm the interests of the company owners in order to maximize their personal interests.Therefore,in order to better solve this problem,company operators hope to achieve incentive compatibility by tying management’s personal interests to the company’s interests through management equity.However,corporate scandals such as the Enron incident and the Xerox incident broke out one after another,which made people start to think whether the higher managerial ownership of a company,the higher corporate value must be? Foreign scholars have verified that managerial ownership can damage the value of a company based on the existence of the phenomenon of large-scale managerial ownership reduction.After the shareholding reform,there is also a prominent phenomenon of managerial ownership reduction in Chinese Stock Market.So,is managerial ownership of listed companies in China also negatively related to corporate value? How to explain the relationship between managerial ownership and corporate value of Chinese enterprises? Are there any special characteristics of their relationship in Chinese listed enterprises?In view of this,we use Chinese A-share listed companies from 2010 to 2020 investigates the relationship between managerial ownership and corporate value.This research shows that(1)overall,the lower managerial ownership in Chinese listed enterprises,the higher the corporate value.(2)In order to study the influence mechanism of their relationship,this paper grouped the samples according to the high liquidity and high performance level,and found that in the high liquidity group and the high performance level group,the proportion of managerial ownership and corporate value showed a more significant negative correlation.(3)In order to study the influence of the special characteristics of Chinese Stock Market on their relationship,this paper groups the samples according to the differences in the nature of controlling shareholders and finds that the higher managerial ownership in state-controlled enterprises,the higher the corporate value,while the opposite is true for non-state-controlled enterprises.(4)In order to study the differences in the influence of internal tripartite management on corporate value this paper studied the correlation between the respective shareholding ratios of directors and supervisors and company value,and found that the shareholding of directors and supervisors were negatively correlated with corporate value,and the negative correlation between the shareholding of the supervisory board and corporate value was the most significant and influential.The innovation of this paper is to study the impact of managerial ownership on corporate value in Chinese listed companies using the latest data,and to further investigate their relationship,taking into account the special characteristics of Chinese Stock Market and the internal composition of management,expanding the existing research on the correlation between managerial ownership and corporate value in Chinese A-share listed companies.