MANAGERIAL OWNERSHIP, CAPITAL EXPENDITURES, AND FIRM PERFORMANCE: EVIDENCE FROM THE TAIWAN STOCK EXCHANGE

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Ching-Hai Jiang, Kuei-yuan Wang, Yen-Sheng Huang

DOI:10.22495/cocv5i4c5p1

Abstract

This paper examines the relationship among managerial ownership, capital expenditures and firm performance using data of 359 firms listed on the Taiwan Stock Exchange over the period 1998-2005. The empirical results indicate a concave relationship between managerial ownership and future firm performance and a positive relationship between managerial ownership and capital expenditures. Moreover, for firms with larger capital expenditures, the interactive effect of managerial ownership and capital expenditures is significantly positively related to firm performance.

Keywords: Managerial Ownership, Capital Expenditures, Firm Performance

How to cite this paper: Jiang, C.-H., Wang, K.-y., & Huang, Y.-S. (2008). Managerial ownership, capital expenditures, and firm performance: evidence from the Taiwan stock exchange [Special issue]. Corporate Ownership & Control, 5(4-5), 418-426. http://dx.doi.org/10.22495/cocv5i4c5p1