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The ethical dimension of management ownership in China

Li, Wei, Wang, Yaping, Wu, Liansheng and Xiao, Jason Zezhong ORCID: 2015. The ethical dimension of management ownership in China. Journal of Business Ethics 141 (2) , pp. 381-392. 10.1007/s10551-015-2722-1

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Management ownership has ethical consequences because it has an interest alignment effect or an entrenchment effect. In this paper, we investigate the ethical consequences of management ownership in China using accounting conservatism as the direct measure of entrenchment and alignment between shareholders and managers. We argue and find that the ethical effect of management ownership differs significantly in firms with different ultimate controlling shareholders. Specifically, management ownership in non-state-owned enterprises (NSOEs) has an alignment effect, while management ownership has less of an alignment effect in state-owned enterprises than in NSOEs. These results show that the ethical consequences of management ownership are moderated by the nature of ultimate controlling ownership.

Item Type: Article
Date Type: Published Online
Status: Published
Schools: Business (Including Economics)
Subjects: B Philosophy. Psychology. Religion > BJ Ethics
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Uncontrolled Keywords: Accounting conservatism, China, Corporate ownership, Ethical dimension, Management ownership
Publisher: Springer Netherlands
ISSN: 0167-4544
Date of First Compliant Deposit: 20 April 2017
Date of Acceptance: 7 June 2015
Last Modified: 06 Nov 2023 20:31

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