Proceedings of the 2nd International Conference on Contemporary Education, Social Sciences and Humanities (ICCESSH 2017)

An Empirical Analysis of the Relationship between the Managerial Ownership and Corporate Performance in China

Authors
Yadan Zhao, Haitao Liu
Corresponding Author
Yadan Zhao
Available Online June 2017.
DOI
10.2991/iccessh-17.2017.222How to use a DOI?
Keywords
managerial ownership; corporate performance; inverted U-shape; linear relationship
Abstract

This study conducts an empirical analysis on the relationship between managerial ownership and corporate performance in China. The objects are 2024 company-year observations from the listed companies traded on Shanghai and Shenzhen Stock Exchanges from 2014 to 2016 after suffering the economic recession in 2008. Initially, there is a linear relationship with positive coefficient between managerial ownership and corporate performance at low level of ownership in China. Moreover, when controlling the time dummies, an inverted U-Shaped relationship is found, which is consistent with Defense Theory (Chen, 2001). It suggests there is an increase of firm value as the increase of managerial ownership at the low level of ownership but a decrease of firm value as the increase of managerial ownership at the high level of ownership. Furthermore, the firm-fixed effects are added in the model, but most variables turn to be insignificant.

Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2nd International Conference on Contemporary Education, Social Sciences and Humanities (ICCESSH 2017)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
June 2017
ISBN
10.2991/iccessh-17.2017.222
ISSN
2352-5398
DOI
10.2991/iccessh-17.2017.222How to use a DOI?
Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Yadan Zhao
AU  - Haitao Liu
PY  - 2017/06
DA  - 2017/06
TI  - An Empirical Analysis of the Relationship between the Managerial Ownership and Corporate Performance in China
BT  - Proceedings of the 2nd International Conference on Contemporary Education, Social Sciences and Humanities (ICCESSH 2017)
PB  - Atlantis Press
SP  - 955
EP  - 960
SN  - 2352-5398
UR  - https://doi.org/10.2991/iccessh-17.2017.222
DO  - 10.2991/iccessh-17.2017.222
ID  - Zhao2017/06
ER  -