Positive Study On Relationship Between Ownership Structure And Operation Performance Of China Agricultural Listed-Companies

The micro-structure of modern economy is featured by share-holding modern companies. Company management, dealing with the relationships between each profit body of these modern companies, takes great influence on its foundation, operation and development. Ownership structure makes itself the base of company management, which determines its operation performance. Obviously, close relationships exist between ownership structure, company management and operation performance, and only a scientific and reasonable ownership structure can lead to perfect company management and satisfactory performance.As a main approach to get financial support from the capital market to promote development of Agriculture, Agricultural listed-companies could themselves grow smoothly or not is vital to the success of the stock markets, as well as the whole national economy. Based on the positive study of ownership structures and operation performance, author makes an extensive research on the agricultural listed-companies. The results are useful to monitors of stock markets, investors, administrators of companies, and even decisive macro-economy department helps too.According to current research papers on the relationship between ownership structure and operation performance, it is common that only Tobin's Q or return on equity (ROE) is used to evaluate performance of a company, and then make a regression analysis on the relationship between ownership structure and acquired performance values with the whole stock market being the research subject despite of the variance of different industries and ways. In order to avoid the limitation of using only Tobin's Q to evaluate marketingperformance and return on equity to evaluate financial performance, this paper introduces factor analysis to calculate synthesized performance, successfully processing totally 12 original indexes, such as return on net sales, average return on equity, return on total assets, per share earning ratio, current ratio, quick ratio, debt to assets ratio, rate of stock-turn, accounts receivable turnover, total asset turnover, main business growth rate, and total assets growth rate. 5 factors are extracted out, which are independent of one another, and keep almost all the information that 12 original indexes have, and then the synthesized performance is calculated according to the different variance contribution of each fector. A scientific, comprehensive, and reliable result is guaranteed.In this paper, author introduces linear regression to make a deep research on the relationship between operation performance and ownership structures of the agricultural listed-companies based on the calculated synthesized performance values. For agricultural listed-companies, the result suggests there is no strong relationship between performance and state-owned stocks ratio or corporation stocks ratio, but a significant negative linear relationship between performance and circulation stocks ratio, and a significant positive linear relationship between performance and the stocks-holding ratio of top five biggest owners. So, a reasonable ownership structure of agricultural listed-companies should not be highly concentrated or highly distributed. Usually, five to ten dominant holding owners do the best to improve the performance of a company. Finally in this paper, suggestions and methods are put forward on how to improve management and performance for agricultural listed-companies.