Ownership Motivation and Corporate Performance in IT Industry under the Wave of E-Commerce: An Empirical Study based on Chinese Public Companies

The development of Internet generated the wave of E-Commerce, which can lead an expansion of IT industry. This paper focuses on the relationship between of ownership motivation and corporate performance in IT companies because the showing of low occupational stability of managers in IT industry. With an empirical research through all 99 IT companies from Shanghai and Shenzhen stock market as the sample data, this paper founded that the average managerial ownership is quite small and has no effect on corporate performance, but there is an U-curved relationship between the population ratio of managerial stockholder and corporate performance.

1. Introduction

During the course of development of China's industry, there have been some unavoidable twists and turns, but we can also see greater and greater successes with a clear destination: harmonious society of socialism. In the progress of reaching this great goal, social life have been changed a lot, not only in living condition but also in life style. Among the factors of influencing people's life style, computer and internet can be on the top of the list. The development of internet has brought great expansion of internet industry and IT industry. Now internet or computers almost dominate people's whole life, which generates a wave of e-commerce. The concept of e-commerce influenced people's daily life, working manner and an enterprise's operation, which is influncing the whole industrial development, and entering the minds of management of enterprises. In the past few years, China's e-commerce market has kept stable development. The e-commerce transaction volume continues to grow rapidly. In 2007 1H, the e-commerce market in China still retained its robust growth momentum with the transaction volume exceeding 1.32 trillion Yuan. See figure 1.