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Study on the Problems of Management Shareholding and the Mixed Ownership

Received: 16 November 2017     Published: 20 November 2017
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Abstract

In recent years, managerial ownership has begun to be used as an incentive mechanism in China. Managerial ownership is one of the ways to realize the mixed ownership reform of state owned enterprises. In this paper, the impact of executive stock ownership on corporate performance of China's state-owned listed companies that mixed ownership has been achieved is analyzed. The conclusions are as follows: the state-owned listed companies management ownership and corporate performance has a positive correlation. The financial performance of the company increases with the proportion of management shareholding, ownership concentration and equity balance. There is a significant negative correlation between the proportion of independent directors and the rate of return on net assets, which shows that the independent directors of state-owned enterprises in China have not played its due role in the governance of state-owned enterprises.

Published in International Journal of Economics, Finance and Management Sciences (Volume 5, Issue 6)
DOI 10.11648/j.ijefm.20170506.15
Page(s) 304-311
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

State-Owned Enterprises, Mixed Ownership, Managerial Ownership, Corporate Performance

References
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[8] Joseph. Stiglitz. Whither Socialism. Economic Journal, 1996, 34(1): 189-191.
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    Gao Li, Song Shanshan. (2017). Study on the Problems of Management Shareholding and the Mixed Ownership. International Journal of Economics, Finance and Management Sciences, 5(6), 304-311. https://doi.org/10.11648/j.ijefm.20170506.15

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    ACS Style

    Gao Li; Song Shanshan. Study on the Problems of Management Shareholding and the Mixed Ownership. Int. J. Econ. Finance Manag. Sci. 2017, 5(6), 304-311. doi: 10.11648/j.ijefm.20170506.15

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    AMA Style

    Gao Li, Song Shanshan. Study on the Problems of Management Shareholding and the Mixed Ownership. Int J Econ Finance Manag Sci. 2017;5(6):304-311. doi: 10.11648/j.ijefm.20170506.15

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  • @article{10.11648/j.ijefm.20170506.15,
      author = {Gao Li and Song Shanshan},
      title = {Study on the Problems of Management Shareholding and the Mixed Ownership},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {5},
      number = {6},
      pages = {304-311},
      doi = {10.11648/j.ijefm.20170506.15},
      url = {https://doi.org/10.11648/j.ijefm.20170506.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20170506.15},
      abstract = {In recent years, managerial ownership has begun to be used as an incentive mechanism in China. Managerial ownership is one of the ways to realize the mixed ownership reform of state owned enterprises. In this paper, the impact of executive stock ownership on corporate performance of China's state-owned listed companies that mixed ownership has been achieved is analyzed. The conclusions are as follows: the state-owned listed companies management ownership and corporate performance has a positive correlation. The financial performance of the company increases with the proportion of management shareholding, ownership concentration and equity balance. There is a significant negative correlation between the proportion of independent directors and the rate of return on net assets, which shows that the independent directors of state-owned enterprises in China have not played its due role in the governance of state-owned enterprises.},
     year = {2017}
    }
    

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  • TY  - JOUR
    T1  - Study on the Problems of Management Shareholding and the Mixed Ownership
    AU  - Gao Li
    AU  - Song Shanshan
    Y1  - 2017/11/20
    PY  - 2017
    N1  - https://doi.org/10.11648/j.ijefm.20170506.15
    DO  - 10.11648/j.ijefm.20170506.15
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 304
    EP  - 311
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20170506.15
    AB  - In recent years, managerial ownership has begun to be used as an incentive mechanism in China. Managerial ownership is one of the ways to realize the mixed ownership reform of state owned enterprises. In this paper, the impact of executive stock ownership on corporate performance of China's state-owned listed companies that mixed ownership has been achieved is analyzed. The conclusions are as follows: the state-owned listed companies management ownership and corporate performance has a positive correlation. The financial performance of the company increases with the proportion of management shareholding, ownership concentration and equity balance. There is a significant negative correlation between the proportion of independent directors and the rate of return on net assets, which shows that the independent directors of state-owned enterprises in China have not played its due role in the governance of state-owned enterprises.
    VL  - 5
    IS  - 6
    ER  - 

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Author Information
  • International Business School, Tianjin Foreign Studies University, Tianjin, China

  • International Business School, Tianjin Foreign Studies University, Tianjin, China

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