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Journal of Business Ethics

Erschienen in:

26.06.2015

The Ethical Dimension of Management Ownership in China

verfasst von: Wei Li, Yaping Wang, Liansheng Wu, Jason Zezhong Xiao

Erschienen in: Journal of Business Ethics | Ausgabe 2/2017

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Abstract

Management ownership has ethical consequences because it has an interest alignment effect or an entrenchment effect. In this paper, we investigate the ethical consequences of management ownership in China using accounting conservatism as the direct measure of entrenchment and alignment between shareholders and managers. We argue and find that the ethical effect of management ownership differs significantly in firms with different ultimate controlling shareholders. Specifically, management ownership in non-state-owned enterprises (NSOEs) has an alignment effect, while management ownership has less of an alignment effect in state-owned enterprises than in NSOEs. These results show that the ethical consequences of management ownership are moderated by the nature of ultimate controlling ownership.

Vorheriger Artikel The Territorial Dimension: The Component of Business Strategy that Prevents the Generation of Social Conflicts

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The data were manually collected from http://www.cninfo.com.cn/, the information disclosure website authorized by the China Securities Regulatory Commission.

This has been reformed since 2005 and as a result these shares can be traded publicly once the restrictions agreed upon by different types of shareholders are lifted up.

We also winsorize observations in the top and bottom 1 % of annual income (NI) and return (RET) observations as a robustness check; the results are the same.

We control for the effect of this ownership difference on our regression results in the section of robustness checks.

Other studies that use this model include those of Nichols et al. (2008), Chung and Wynn (2008), and Goh and Li (2011).

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Titel: The Ethical Dimension of Management Ownership in China
verfasst von: Wei Li
Yaping Wang
Liansheng Wu
Jason Zezhong Xiao
Publikationsdatum: 26.06.2015
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 2/2017
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-015-2722-1

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