The Relationship between Manager Ownership, Government Subsidies and Investment Incomes Based on the Ownership Structure of Manufacture Industry

摘要

This paper classifies companies into two categories (from distress to normal, from distress to worse) according to the change trend of financial distress. By comparing these two kinds of companies, this paper explores the relationship among manager ownership, government subsidies and the investment income. The evidence suggests that, under the circumstance of different degree of checks and balances of the ownership structure, the financial subsidies and the management shares play different roles. Companies with lower degree of checks and balances, their investment income is significant negative to government subsidies, the management' shares and the largest shareholder' shares, and the investment income is significant positive to the tradable shares of top five shareholders. However, Companies with higher degree of checks and balances, their investment income is positive to government subsidies, the proportion of management shares and the second -largest shares, and this kind of company easily get out of financial distress.