Executive Stock Ownership, Dynamic Adjustment of Capital Structure and Corporate Performance: Evidence from Chinese Listed Marine Industry Companies

Abstract

Guo, X.; Liang, P., and Xie, Z., 2020. Executive stock ownership, dynamic adjustment of capital structure and corporate performance: Evidence from Chinese listed marine industry companies. In: Gong, D.; Zhang, M., and Liu, R. (eds.), Advances in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 106, pp. 300–304. Coconut Creek (Florida), ISSN 0749-0208.Taking the Chinese A-share listed companies traded at Shanghai Stock Exchange and Shenzhen Stock Exchange from 2010 to 2017 as samples and further investigating companies concerned with marine industry, this paper conducts empirical research on the impact of executive stock ownership on capital structure adjustment and corporate performance. It also verifies whether the speed of adjustment and degree of capital structure deviation have mediating effects on the relationship between executive stock ownership and corporate performance. The research found that executive stock ownership significantly promotes capital structure adjustment, which exerts a certain degree of mediating effect on executive stock ownership and corporate performance, and that on differentiated levels of corporate debts, such an effect is more obvious in the over-indebted companies. When the executive stock ownership is less than 5%, the effect is more significant. In the group concerned with marine industry, the speed of capital structure adjustment and the degree of capital structure deviation exert partial mediating effects on the relationship between executive stock ownership and corporate performance.