The Inverted N-shaped Relationship Between Managerial Stock Ownership Incentive and Corporate Performance: Experience and Enlightenment of Japanese Listed Companies

摘要

There are two contradictive views between the managerial stock ownership and corporate performance in theoretical study, but different opinions in empirical study. Applying the model of panel data based on the samples of Japanese companies, the research results show that the inverted N-shaped relationship is obviously presented between the managerial stock ownership and corporate performance. The policy enlightenment is that the emphasis to implement incentive mechanism of managers' stock right in China is not to increase the proportion of share ownership, but to design the reasonable interval of share ownership. In this interval, the convergence-of-interests effects can be full exerted, and the entrenchment effects cannot be induced.