| The management shareholding has always been a hot topic in the company’s salary incentive mechanism.However,most researches in academia focus on the relationship between management’s ownership and corporate performance.Few articles have studied the intermediate process of risk taking.Due to the immature capital market in our country and the changing economic environment,the company faces various uncertainties and business risks every moment.If corporate risk aversion,prudent investment in the face of uncertainty,they are likely to lose an excellent investment opportunities because of conservative strategies leaving the company stagnant;if the business take the initiative to take some risks within the acceptable risk range,choose Projects that are risky but hide huge investment opportunities will give businesses an unexpected opportunity.As shareholders,they can be "risk-neutral" by diversifying risk through the portfolio theory of the capital markets;and as managers,they typically work at only one company and are "risk-averse" for career stability.Shareholders prefer risk,hope management investment decision-making does not consider the size of the risk,select the net present value greater than zero project.Management loathes risk,chooses projects with low risk and greater than zero NPV when making investment decisions,and gives up some projects that are risky but have a net present value of greater than zero.Therefore,management’s risk aversion damages shareholder value,which is not conducive to long-term development of the company.Management shares can effectively solve this conflict of interest.When the management holds a certain shareholding,the convergence of management and shareholders’ interests will be more inclined to choose a high-risk but positive NPV investment project to promote the development of the company.This paper selects the A shares of listed companies in our country from 2011 to 2014 as the research sample and adopts the panel data analysis method to make descriptive statistics and regression analysis on the relationship among the management shareholding,the marketization process and the risk commitment,and draws the following conclusions:(1)Management shares can improve the level of corporate risk-taking;(2)Faster marketization process can encourage enterprises to take on more risky investment projects and promote the accumulation of capital and long-term development of enterprises.Finally,based on the empirical results,this paper puts forward some suggestions on how to perfect the capital market in our country and how to set up and improve the equity incentive mechanism.In the past,most of the research results on risk taking concentrated in the banking and other financial industries.In this paper,by studying the risk-taking of enterprises,people are aware that in today’s fast-growing economy and it can really promote the development of enterprises and progress.The result of this paper greatly enriched the research on corporate risk at this stage. |
