The Relationship between Attribute of Control Rights and Shareholdings of Managers and the Governance Efficiency of Chinese Listed Companies

This paper examines the relationship between attribute of control rights and shareholdings of managers, and governance efficiency of the listed companies. The result of study shows that attribute of the control rights of China's listed companies has an important effect on shareholdings of managers. On this basis, Regression results using 1002 Shanghai and Shenzhen listed company observations in 2003 show that, as an incentive mechanism, shareholdings of managers play an active role in corporate governance. However, there are some defects in our manager's shareholding system, especially for state-owned companies. Finally, we put forward some suggestion about it.