Study on the Problems of Management Shareholding and the Mixed Ownership

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.

The impact of mixed-ownership reform on zombie firms: Evidence from Chinese listed SOEs

“…Presently, the number of independent directors within SOEs remains relatively low, often nominated by state-owned shareholders, occasionally leading to the selection of social celebrity figures as independent directors. This diminishes the professionalism and objectivity of independent director opinions [ 42 ]. Involvement of non-state-owned capital ensures the appointment of professional individuals as independent directors, thereby strengthening their role in corporate governance.…”

A Study on Corporate Governance of Mixed Ownership Enterprises

“…As a unique form of corporate organization, mixed ownership has been existed for a long time in the development of China's market economy, but it has not yet received much attention and promotion in the mainstream capitalist countries in the West. In addition to PPP and special circumstances (economic crisis outbreak), mixed ownership has been used as a transitional means [1][2]. In China, the emergence of mixed ownership enterprises is mainly due to the reform of stateowned enterprises and economic transformation, and it has been developed from the path of the exploration of the combination of state-owned enterprises and market economy.…”