ヤクイン モチカブ ワ キギョウ ギョウセキ ニ エイキョウ オ アタエルカ？

incentive

J33

The effect of managerial ownership on firm performance: case in Japan Although average Japanese director own their companies' stocks of 70 million yen (560,000 us dollar), there has been few studies on the relationship between managerial ownership and firm's performance in Japan. The purpose of this paper is to investigate the effect of managerial ownership on firm performance in Japan. According to agency theory, the company with higher managerial ownership may perform better than those without, as managers may want to maximise their own interest. We estimate the determinants of firm performance using micro data of 208 large listed companies in 1992-1996. We found that there is positive and significant relationship between managerial ownership and firm's profit. These results suggest that managerial ownership may motivate managers to work hard toward firm's performance.