Effect of manager shareholding on performance of listed companies: Based on the assumption that the private return of the manager shall be larger than the return on equity

The core of listed company governance is to improve company performance and protect investors´ benefits. Professional manager is the direct operator for a company, who directly affects company performance. Moreover, the shareholding percentage of professional manager may directly affect manager´s performance. Accordingly, this thesis researches on how the managerial discretion effects on the corporate performance in different level of manager shareholding. It aims to reach a conclusion of the effect between managerial discretion and corporate performance in theory and makes use of the public data which come out from parts of the listed companies of our country to support the conclusion by demonstration, which may provide a referential basis for listed companies on decision making related with manager shareholding level.