Abstract:

Based on the theoretical analysis and empirical research, this article attempts to study the correlation between managerial ownership and corporation performance. Different from existing articles, this article pays more attention to those listed companies with high managerial ownership proportion. The results show that the return on equity/ earnings per share (ROE/EPS) and percent of managerial stock（PMS） is expressed as a cubic equation and if managerial ownership level is between 2219% and 5483%, it will be positively related to corporate performance.

Key words: managementownership, encouragement, corporateperformance, listedcompanies