Academic Journal of Business & Management, 2023, 5(23); doi: 10.25236/AJBM.2023.052328.
Yanchao Pan
School of Economics and Management, Inner Mongolia University of Technology, Huhhot, 010051, China
Currently, there is a certain shift in the management mode of enterprises in China, and at the same time, higher standards are put forward for corporate governance. Taking 2012-2021 GEM listed companies as a sample, the impact of executive shareholding on corporate governance efficiency is examined from the dynamic level of enterprise life cycle. The empirical results show that executive shareholding has a positive impact on corporate governance efficiency, and there are differences in the impact of executive shareholding on corporate governance efficiency when enterprises are in different life cycles. From the expansive analysis, it can be seen that female executive shareholding has an inverted "U"-shaped relationship with corporate governance efficiency, and this effect only exists in the growth period of the enterprise's life cycle. This paper enriches the research on executive shareholding and corporate governance efficiency, and provides theoretical references for the implementation of executive shareholding plans in GEM companies.
executive shareholding, female executive shareholding, corporate governance efficiency, life cycle
Yanchao Pan. The Impact of Executive Shareholding on Corporate Governance Efficiency—from Firm Life Cycle Perspective. Academic Journal of Business & Management (2023) Vol. 5, Issue 23: 204-211. https://doi.org/10.25236/AJBM.2023.052328.
[1] Jensen M C, Meckling W H. Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure [J]. Springer Netherlands, 1976(4): 305-360.
[2] Liu Kaihao, Zhu Hong. Loan Renewal Restrictions and Outward Foreign Direct Investment of Enterprises--Based on the Perspective of Enterprise Life Cycle [J]. Journal of Shanxi University (Philosophy and Social Science Edition), 2023, 46(03): 148-160.
[3] Zhou Yunbo, Zhang Jingwen. Can Managerial Equity Incentives Enhance Firm Value? --Evidence from Chinese A-share Listed Companies [J]. Consumer Economics, 2020, 36(01): 26-34.
[4] LIU Baohua, WANG Lei. Performance-based Equity Incentives, Exercise Limitations and Corporate Innovation [J]. Nankai Management Review, 2018, 21(01): 17-27+38.
[5] WEI Wenjun, SHI Huaqian. Executive shareholding, investment behavior and financial performance [J]. Finance and Accounting Newsletter, 2017, No. 760(32): 23-26.
[6] Ni Yan, Hu Yan. The Impact of Equity Incentive Strength on Corporate Performance--Taking A-share Listed Companies as an Example [J]. Jianghan Forum, 2021, No. 514(04): 17-27.
[7] Lei Hui, Long Hui. Governance Efficiency of Listed Companies in China-Based on DEA Method [J]. System Engineering, 2016, 34(11): 17-23.
[8] Lv Xinjun. Equity Structure, Executive Incentives and Governance Efficiency of Listed Companies - A Study Based on the Heterogeneous Stochastic Boundary Model [J]. Management Review, 2015, 27(06): 128-139.
[9] LI Lianwei, Lv Bangle, GUO Yuanyuan. Equity Incentives and Governance Efficiency of Listed Companies - Based on Human Capital Perspective [J/OL]. System Engineering: 1-15 [2023-05-15].
[10] Stulz R. M. Managerial control of voting rights: Financing policies and the market for corporate control [J]. Journal of Financial Economics, 1988(20): 25~54.
[11] DONG Zhu, MA Pengfei. Executive shareholding: "trench defense" or "convergence of interests"-based on the determining role of internal control [J]. Journal of Xi'an Jiaotong University (Social Science Edition), 2019, 39(03): 23-31.
[12] Li S. R, Zhang R. J. Equity Incentives Affect Risk Taking: Agency Cost or Risk Aversion? [J]. Accounting Research, 2014(01): 57-63+95.
[13] Fama E F, Jensen M C. 1983. Separation of ownership and control [J]. Journal of law and Economics, 1983(26): 301-325.
[14] Huang Wenqing. Foreign Shareholder Heterogeneity, Firm Nature and Corporate Governance Efficiency - An Empirical Test Based on Chinese Listed Companies [J]. Finance and Economics Theory and Practice, 2017, 38(01): 74-79.
[15] Dickinson V. Cash Flow Patterns as a Proxy for Firm Life Cycle [J]. The Accounting Review, 2011, 86(6): 1969-1994.
[16] Xie Peihong, Wang Chunxia. Management Power, Firm Life Cycle and Investment Efficiency: An Empirical Study Based on Listed Companies in China's Manufacturing Industry [J]. Nankai Management Review, 2017, 20(01): 57-66.