Research On The Influence Of Chain Director Network On Market Value Management Under The Adjustment Of Management Shareholding

The 20 th National Congress of the Communist Party of China pointed out that the important direction of modernization of socialism with Chinese characteristics is to achieve high-quality development.In the process of achieving high-quality development,the market dominant position of listed companies has been further strengthened.At the same time,the phenomenon of chain directors in listed companies is increasing day by day.With the development of the capital market,listed companies also need to conduct market value management to achieve the matching between market value and the company’s intrinsic value,and to achieve maximum market value and thus maximize shareholder wealth.Therefore,this article intends to study the impact of chain director networks on market value management,and further introduce the regulatory variable management shareholding to explore the relationship between them,in order to provide substantive reference opinions for the high-quality development of listed companies in China.Firstly,on the basis of discussing the background and significance of the research,this article reviews and sorts out previous research literature on chain director networks,management shareholding,and market value management,and defines the three core concepts of chain director networks,market value management,and management shareholding.Based on principal-agent theory,social network analysis theory,and resource dependency theory,this article proposes research hypotheses.Secondly,referring to the relevant research of existing scholars,we selected and designed variable indicators to conduct empirical research on China’s Shanghai and Shenzhen A-share listed companies from 2015 to 2019.The research finds that measuring the position of listed companies in the chain director network from the perspective of network centrality,it is found that the closer the listed companies are to the network center in the chain director network,the more conducive they are to improving the degree of market value management measured by annual excess return.At the same time,the existence of management shareholding will enhance the impact of chain director networks on market value management.Further research has found that when the network centrality of chain directors of listed companies increases to a certain extent,the effectiveness of market value management will decline.Finally,based on the empirical research conclusions and the current situation of market value management of listed companies in China,relevant suggestions are proposed from the perspectives of directors,internal governance,and relevant government regulatory departments of listed companies.