| Summary: | 碩士 === 國立高雄第一科技大學 === 金融營運所 === 90 === The main objective of this study is to investigate the relationship between stock ownership of directors, pledged shares of directors, market capitalization and operating performance. The return of asset、return of equity、margin after tax、earnings per share、ratio of market capitalization to book value and ratio of earning price are used as the proxies of operating performance. It is estimating by panel data and time series of polynomial distributed lag. The sample includes firm that are listed on the Taiwan Stock Exchange from 1996 to 2000. The final sample contains 249 firms and 1245 observations. The results are as following：
Firstly, there is no evidence that stock ownership is associated with operating performance. Neither the convergence of interest hypothesis nor the entrenchment hypothesis is supported.
Secondly, there is no evidence that pledged shares ratio is associated with operating performance. We can not assert that the higher the pledged shares ratio of directors ,the less care in operating performance.
Finally, there is a significantly positive relation between the market capitalization and operating performance. The large the market capitalization, the better the operating performance.
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