Managerial Ownership Matters for Firm Performance: Evidence from China

Content Provider	Semantic Scholar
Author	Hua, Yifan
Copyright Year	2006
Abstract	We study the managerial ownership-performance relationship by examining a unique sample of non-listed Chinese firms, of which the ownership structure is essentially exogenously determined subject to government policies irrelevant to incentive contracting. In matching-sample comparisons, we find that firms of significant managerial ownership performed superiorly relative to those whose managers do not own equity shares. Our results indicate a strong and robust positive effect of managerial ownership on company performance. In contrast to existing studies, our results are not likely to suffer from an endogeneity problem that is often difficult to resolve with conventional data of publicly traded companies. JEL classification: G32; L14; L22
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.cicfconf.org/past/cicf2006/cicf2006paper/20060201085218.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article