Ownership Structure, Corporate Governance And Corporate Performance

This paper firstly analyzes the relationship between Ownership Structure and Corporate Governance from the aspects of emergence and modes of Corporate Governance. Focused on the controlling shareholders, positive side and negative side of its effects on Corporate Governance is studied, providing the theoretical basis of the rest of the paper. Then the characteristics of Ownership Structure of Chinese listed companies and the background of its emergence are studied, based on which the problem of Chinese Corporate Governance is given. Controlling shareholders are existent universally among Chinese listed companies, making the emphasis of Chinese Corporate Governance lie in the conflicts between large shareholders and other small shareholders. Furtherly, the difference of share characteristics among controlling shareholders makes the problem more complex. Based on the analyses mentioned above, this paper studies the situations of external and internal governance of Chinese listed companies, focusing respectively on the controlling rights market and corporate board. It shows that the Ownership Structure of Chinese listed companies increases the transaction costs of external governance activities, weaking the efficiency of corporate external governance. The problems of internal governance embodied by attributes of board are common among listed companies having different Ownership Structure. The Ownership Structure does have some effects on the attributes of corporate board, but it is not significant. Furtherly, the relationship between Ownership Structure and corporate performance is studied from two aspects. The result shows that the negative effects of controlling shareholder on corporate performance overwhelms the positive effects, and the performance of the companies controlled by conventional person shareholder is better than that of the companies controlled by state-owned shareholder. Finally, this paper puts forward some advice on the selection of Chinese Corporate Governance model.