Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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Research on the Agency Problem, Corporate Governance and Firm Value

Authors
Gengli Hao1, *
1Renmin Business School, Renmin University of China, Beijing 100000, China
*Corresponding author. Email: hgl@ruc.edu.cn
Corresponding Author
Gengli Hao
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.475How to use a DOI?
Keywords
agency problem; privately listed companies; tradable shares; non-tradable shares
Abstract

Based on the financial data of 373 private listed companies in Shanghai and Shenzhen Stock Exchanges in 2019, this paper makes a theoretical analysis and empirical test on corporate governance and enterprise value by using agency theory. This paper finds that China’s private listed companies have agency conflicts in four directions: ownership concentration, debt financing proportion, the deviation of control right and ownership, the deviation of the stock prices of tradable shares and non-tradable shares. This paper points out that the primary reason for the agency conflict of private listed companies is the price separation of tradable shares and non-tradable shares. The split share structure system is the product of the joint-stock reform of state-owned enterprises. After the reform of the split share structure, the non-tradable shares of private listed enterprises in China are mainly corporate shares and management shares. Although management shares can play a positive role in corporate governance, the excessive shareholding of the management will also lead to the decline of its constraints and endanger the interests of the company. Therefore, private listed companies should establish a restraint mechanism matching with the equity incentive mechanism.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.475How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Gengli Hao
PY  - 2022
DA  - 2022/03/26
TI  - Research on the Agency Problem, Corporate Governance and Firm Value
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2917
EP  - 2923
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.475
DO  - 10.2991/aebmr.k.220307.475
ID  - Hao2022
ER  -