Management ownership and firm performance —Empirical evidence from the panel data of Chinese listed firms between 2000 and 2004

Abstract

This article explores the relationship between management ownership and firm performance. Using the panel data of Chinese listed firms from 2000 to 2004 and the average model, we attempt to avoid some of the deficiencies in research design and performance indicator selection in prior studies. Results show that the proportion of shares held by top management is significantly and positively related to firm performance. Empirical tests of sub-samples in each year confirm the above conclusion.