An Empirical Study Of The Shareholding Structure And Firm Value In The Chinese Listed Company

Study at home and abroad has not yet come to a very clear conclusion referring to the relationship between shareholding structure and firm value of a company.With a unique shareholding structure in the Chinese listed company, the relationship between the shareholding structure and the firm v alue in the Chinese e quity market seems i nconsistent w ith t he Western theoretical and empirical study. In this paper, the correlation analysis methodology is applied to the e mpirical s tudy o f the r elationship between Chinese firm v alue a nd s hareholding s tructure. Given the historical background and system arrangements, their intimate connection is examined and policy implication on shareholding structure is presented according to the statistical results.AS a result,we find the following results:First, it is shown in the empirical study that an over-diversified shareholding structure may lead to the 'free rider' problem and the relative concentration of the shareholding is beneficial to the enhancement of firm value.Second, the relative control by the legal person is beneficial to the enforcement of corporate governance in the Chinese listed firm.