An Empirical Analysis of the Relationship between the Managerial Ownership and Corporate Performance in China
- 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/).
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 -