Analysis Of The Relation Between Equity Structure And Performance Of Chinese Listed Firms

The influence of equity structure on performance is analyzed detailedly with the firms listed in Shenzhen Stock Exchange and Shanghai Stock Exchange. The performance is measured by factor and Tobin' s Q and different results are compared. There are quadratic curves between performance and state-owned shares, legal-person shares, equity disperse degree and the biggest shares, and thrice curves between performance and tradable shares. Relation between managerial shares and performance is vague, and employee shares influence performance to a certain extent.Finance structure is inducted to lucubrate the relationship between equity structure and performance. The influence of equity structure on finance structure is discussed particularly. There are thrice curves between finance structure and state-owned shares and legal-person shares, quadratic curves between finance structure and equity disperse degree and the biggest share, and simple linearity between finance structure and tradable shares. The relation between finance structure and managerial shares is vague, and there is simple negative linearity between employee shares and finance structure. Requirements of different shareholders on financial structure are different because of their own interests.Irrational equity structure of China listed firms is one of the reasons why the relationship between performance and asset-debt rate is negative correlation. Equity structure is an important factor that influences financial decision, and performance changes for different liability. Finance structure plays a important role in the chain, the influence of equity structure on financial decision results in changes of performance.The combine of financial indexes and market represent is anecessary method to evaluate performance, and help to set irrational equity structure.Adjustment of equity structure, encouragement and supervision on managers and exterior restrictions are three means to control behaviors of listed firms efficiently, promote performance of China listed firms and develop the security market.