Market value management consciousness and behaviors of Chinese A-share listed companies

Abstract

Based on the data of 2,399 listed companies in China's A-share market from 2008 to 2017, this paper predicts the impact of four market value management behaviors—the communication relationship between listed companies and investors, the communication relationship within the board of directors, stock repurchases, and executive compensation—on the performance of market value management. The empirical results show that improvement of the communication relationship between listed companies and investors, enhancement of the internal communication relationship of the board of directors, implementation of stock repurchase behavior and higher executive compensation are all beneficial to improve the performance of the company's market value management and enable the company to achieve greater market value. Among them, improvement of the communication relationship with investors plays a greater role in improving the market value management performance of companies with lower ownership concentration and lower asset-liability ratio. This paper enriches the research about the impact of Chinese-listed companies’ market value management behavior on market value management performance, fills in the blank of the four market value management methods, and has important strategic guiding significance for listed companies in China to choose and implement more reasonable market value management behavior and achieve better market value management performance.