The Influence Of Listed Company Managerial Ownership On Shareholder Wealth

Enterprise development investment has become an important symbol to measure itsinnovation development ability，which is the basic guaranty to the enterprise to achieve l lastadvantage in the fierce market competition. Therefore, the enterprise development investmentbehavior has become common attention topics of financial theory and practice circles. Weexplore the relationship among managerial ownership, R&D investment decisions, shareholderwealth, which is seldom involved in research on financial management. It has been morefocused in particular on two issues, which is less likely to see using the capital market data toanalyze the internal relationship of the three relevant studies.In the ending of2005, The State Council promulgated the “The equity incentivemanagement practices of listed companies (implementation)”, and in early2006, itimplemented “The national long-term plan for science and technology development(2006-2020)”, and the same year, the Treasury issued “the new enterprise accountingprinciples”, which is the system background of this paper. It chooses from the2007to2009,995listed companies with a disclosure of R&D investment and managerial ownership as theresearch samples. Based on the research status at home and abroad and the analysis of therelevant theoretical，it puts forward hypothesis, and builds models, in the next it selects thesamples and the data, then it uses standardized analysis and multiple linear regression to analyze.It introduces R&D investment decisions as intermediate variables to make empirical analysisfor the sample data. We study the relationship among managerial ownership, R&D investmentdecisions, shareholder wealth, so as to explore the creation of shareholder wealth to provideempirical evidence for listed companies.In this paper, it uses R&D investment decisions as the core, and uses the market price pershare to measure shareholder wealth, and then further studies the transmission mechanism ofR&D investment decisions on managerial ownership and shareholder wealth. The results showthat:1）R&D investment decisions have mediating effect on managerial ownership and shareholder wealth. This shows that the complete incentive model of managerial ownership, canoptimize R&D investment decisions, and then create more wealth for shareholders with thescientific and rational R&D investment decisions.2）Compared to state controlled listedcompanies, that the transmission mechanism of R&D investment decisions on managerialownership and shareholder wealth in the non state controlled listed companies is moresignificant. This shows that the stock market investors are more inclined to recognize the valueof R&D investment in private company.3）R&D investment decisions in high-tech companieshave mediating effect on managerial ownership and shareholder wealth, which is not found inthe non-high-tech companies.Finally, this paper concludes the empirical results, and puts forward some policysuggestions combined with the empirical results. At the same time, it points out the deficiencyof this study.