Study On Corporate Governance Effect Caused By Shareholder Structure Reform

Based on the background of shareholder structure reform, this paper studies the corporate governance effect caused by the reform of shareholder structure. on interest point of view The main problem this paper what to solve is how the reform has influence on corporate governance of listed company.Split shares means that because of the special background during China's capital market development period, some shares of listed company are non-tradable shares, some are tradable share, and this status only exist in China. Under split shares condition, the corporate governance of listed company has serious limitations. To improve the corporate governance of listed company and reform the micro-foundation of market capital is the theoretical base of shareholder structure reform, and it is also the original intention of the reform.After related literatures review, this paper first studied the possible influence that may caused by the shareholder structure reform theoretically, then empirically researched the corporate governance effect of shareholder structure reform.Logically speaking, the reform of shareholder structure can have many effects on the stakeholders of listed company, and the corporate governance will represent new characters. The influence on internal governance is that the interest relationship between interest shareholders and the incentive of managers system will change, the conflict of interest can be resolved to some degree. The influence on external governance is that the function of capital market such as pricing and distributing resource can be in effect, and the external market such as control market and manager market can effectively restrict the holder of listed company and its manager.Practically analysis, we want to know how the reform of shareholder structure has influence on corporate governance, and this need empirical research and estimate. There are three empirical researching in this paper. First, by researching the factors that have influence on the compensation ratio, this paper studies the effect of interest relationship between shareholders in the course of shareholder structure reform. Second, by analyzing the equity incentive to the manager of listed company, this paper studies the effect of incentive. Third, by researching the relationship of shareholder structure and corporate performance, this paper studies the corporate governance effect caused by the reform synthetically.Compared with other studies, the main result and innovative work of this paper are as followed:First, when study the effect of interest relationship between shareholders in the course of shareholder structure reform, this paper indicate that, the potion of non-tradable share, the variation of non-tradable share during shareholder structure reform, the potion of institutional investor share, the company's financial leverage, are important factors that influence consideration level, the character of holding shareholder, the achievement of listed company, promising item in the scheme of shareholder structure reform have no influence on consideration level. The result means that the request of tradable shareholders is satisfied in some degree, but the institutional investor does not satisfy have active effect on corporate governance.Second, when study the effect of incentive to the manager of listed company, this paper finds that also it is not long time since our country put in practice equity incentive, it has present two opposite effect. On the one hand, equity incentive bring large interest to the incentive objects, on the other hand, the potential risk during the course of equity incentive arose disputes. To see the effect of equity incentive on listed company, the equity incentive plan does not make progress the management and save cost distinctly, but it obviously help to increase the profit of listed company and improve the performance. It needs some conditions for the equity incentive to have more action, such as, effective capital market, incentive plans suit for the characteristic of different object, and other correlative measure inside and outside the company.Third, when research the relationship of shareholder structure and corporate performance, this paper finds that compare with the period before the reform, the institutional investor has more effect on the corporate governance. But in the early days of the reform, the increase of tradable shares does not improve the corporate performance obviously. Empirical researching on the second board of security market, the result indicate that the control of lager shareholder to the listed company is still a serious problem that puzzle the corporate governance.At the end of this paper, the author put forward some suggestions to improve the corporate governance, such as, to reform the interest relationship system during the reform of shareholder structure, to improve the internal and external mechanism of corporate governance, to reform the equity incentive to the managers of listed company, and to enhance the regulation to listed company.