Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

Impact of Managerial Ownership on Firm Performance: Evidence from China’s A-Share Market in difference of private enterprises and SOEs

Authors
Zihan Zhang1, *
1SUSTECH College of Business, Southern University of Science and Technology, Shenzhen, 518055, China
*Corresponding author. Email: 12313036@mail.sustech.edu.cn
Corresponding Author
Zihan Zhang
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_26How to use a DOI?
Keywords
OSL; Private enterprises; SOEs; ROA
Abstract

This paper is research the impact of managerial ownership on firm performance according to analysis private enterprises and SOEs from China’s A-Share market. Based on China’s special socialist background, the managerial ownership and management mode have significant difference. Compared to government-controlled structure of state-owned enterprises, private enterprises’ share structure is more diverse, and ownership changes flexible (such as mergers and acquisitions, etc.). Managerial shareholding can promote the consistency of management and shareholders’ goals through the theory of interest consistency, so as to improve firm performance. The study use pearson correlation and OLS regression model to examine the connection between company performance and management ownership, which is meanly measured by return of assets (ROA). The control variables include firm size, leverage ratio, working capital and industry growth rate. The results show that managerial shareholding in private enterprises, has a favorable impact on business performance while in state-owned enterprises, the incentive mechanism of managerial shareholding is not obvious, and may even have a negative impact. This study will provide reference for firm governance policy and management incentive design in the future. But also pointed out some shortcomings, it includes the neglect of other incentive forms (time option, long-term incentive plan, etc.), and insufficient control of potential variables such as macroeconomic factors and industry competition. Future research can further explore the impact of different management incentive forms on firm performance.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_26How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Zihan Zhang
PY  - 2025
DA  - 2025/02/24
TI  - Impact of Managerial Ownership on Firm Performance: Evidence from China’s A-Share Market in difference of private enterprises and SOEs
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 252
EP  - 261
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_26
DO  - 10.2991/978-94-6463-652-9_26
ID  - Zhang2025
ER  -