A Study On Ownership Structure And Firm Performance Of Family Listed Corporate In China

The study on listed company of China is the focus that the financial scholar pays close attention to all the time. But I focus on Chinese family listed firm and analyze the relationship between their ownership structure and performance which is how equity ownership structure affects firm’s performance.The theoretical research foundation of west economy is a developed capital market, but for family firm in the transition economy of our country, must have a lot of uncomfortable place. Because China has her specialty that family firm is born out of transition from the planned economy to the market economy. So how can we assimilate the results of scientific research is very important. Because Chinese family firm has been appeared a few years ago, its properties can not be observed over a long period of time, I have to do tentative program according to the relevant theory which reflects its unique studying value. In recent years, scholars, enterprises, and government have done a lot of useful research in theory and practice. According to research documents, Chinese still seems insufficient to the positive research of the stock right structure of listed company of family and company’s performance, need to carry on certain perfection in studying samples, research approach etc.From modern enterprise theory, property right theory and single-minded to analyze some theory3angles of family firm launch describing this text. Influence the angle or the angle of right of inheritance to define a great deal of under the family firm to some scholars in terms of ownership and control power, culture. This text propose so-called family listed companies refer to enterprise organizational forms, which ultimate control power of enterprise can sum up in individual or the members of their family, and these natural persons or families can control these enterprises. Regarded this as standard, I select839ultimate samples are retained through the statistic standard. To our stock market’s current situation, I introduce five representative sample family ownership’s characteristic with graphic presentation. Though there are complicated conditions, intrinsic quality must be represented by the quantum index. This paper divides equity structure into four categories:stock attribute, equity concentration, insiders share and circulation of stock.Limited by such factors as the idea, listing amount, policy threshold, etc, in early days, the enterprise run by the local people did not involve the security market long ago. Only the lucky fellows in a few family firms can enter the security market. And the listed family firms have several characteristics:The indirect listing way is a mainstream; it exceeds half family listed companies to centre in the coastal open region; it is relatively centralized that the trade is distributed; the change of the quality appears in the one’s own development of enterprise after being listed.This text has analyzed the main reason that family firms are listed:(1) China Mainland set up effective protection light mechanism of stockholder’s equity yet, in addition, the existence of listing family firm and family non-listing group controlling interest, the listing reasons of enterprises have potential possibility of robbing minority stock holder’s income at least in our country clan.(2) Chinese family business have already set up the holding way of pyramid tentatively, and listed company in Pyramid bottom usually.(3) Chinese family firms possibility "enclose the money ".This text thinks that company’s performance includes two components of the financial performance and market performance. The financial performance means by way of constructing some financial rates to weigh enterprise’s management performance from enterprise’s open financial report. The market performance includes the appraisal on the company of the market again on the basis of financial performance.In order to cope with the traditional performance evaluation measures’deficiency, I adopt factor analyses to obtain the comprehensive performance valuation, and extract5communities to explain the80%financial information. So121comprehensive results are achieved which indicate the debt paying ability and core revenue profit ability affect the comprehensive assess results mostly. Compare the performance index with pair samples; we get a conclusion that the family firm’s performance is better than the pair samples’. So I consider Chinese family firm’s equity structure can affect its performance clearly.Enterprises are listed and relied mainly on indirect "going public through buying a shell" form in them; Listing reason of them not merely lies in obtaining the social capital that development needs, it also may lie in control family to in minority stock holder occupy; Should know and treat profit and fraud that the family firm is listed in an all-round way.In the end, I draw4conclusions:(1) there is no relevance between SOSP, ASP,FSP and corporate performance, while LSP does the effect.(2) inverse "U" shape does not appear according to the ownership concentration and performance.(3) insider share inspire does a little function.(4) though stock circulation’s regression coefficient is positive, but the effect is not remarkable.Finally, this text proposes some policy recommendations. I will also bring up suggestion regarding Chinese family listed firms in order to enhance the corporate long-term performance.First, improve the stock right structure of the listed company of the family from system. Change the distribution of share ownership of listed companies of present family, making the stock right of the family shareholder proper and decentralized and outside, controlled interest definitely and turned into controlling interest relatively.Second, standardize the administration structure of the listed company of the family from system. Carry on the management innovation constantly with new thinking and new idea.Third, protect the interests of medium and small investors from system, should give full play to the supervision function of supervising the authorities, in-depth reporting and the excavating and analyzing of professional organization with the news media that are complemented; It represents the employer’s organization of medium and small investor’s interests to set up, introduce " ultimate owner "’s concept in the relevant regulations of listed company and relevant disclosure of information, improve the transparency of the market information, enable investors to choose the investment objective more rationally.Fourth, accelerate the listing paces of the private listed company, alleviate the state of the high-quality financial product in short supply, improve the validity of the capital market, make it can reflect the value of the private listed company objectively and rationally.