The Impact Of Ownership Structure Of Firm On Performance

The China's stock market shows its particularity from the other countries. The states-owned stock is on a big scale, but the stock owned by the non-states company only has little proportion. In addition, the stock owned by the family controlled enterprise is proportioned with the states-owned enterprise. This phenomena that effect on the relationship between the ownership structure and the performance of the company is a question to us. The question that a company would perform good if reduce the share of stock also urge us to investigate and study, what is the ideal ownership structure for a family control company? now the special share of stock whether or not affect the performance of the china's stock market is the original force to urge us to study.The production of the family controlled companies already occupied 13% of china's GDP in 1999.This industry is only second to agriculture. At the same time, some family controlled companies come into the market. As we all know the family controlled companies' behavior differed greatly from that of the states-owned company, so we picked the states-owned companies and family controlled companies out from the stock market.we studied the influence factor of the company performance from the point of ownership structure.We defined the family controlled company which dealing publicly in the stock market. (l)we can trace the final controller of the family controlled company.(2)the final controller must be the corporate largest shareholder or indirectly holding the largest share of stocks.During the data processing, we can concluded that the perfoemance between states-owned companies and family controlled companies is not obviously. But under the different ownership structure the two companies shows greatly difference. 1.Between the 20%-50% share holdings, the relationship between the performance and the ownership structure of the states-owned companies was obviously.2.Above 50% share, the relationship between the performance and the ownership structure of the family controlled companies was obviously.but the states-owned companies was opposite.3.Between the 20%-50%, the states-owned companies performed good, on the other wise, the family controlled company performed good when they holded more than 50% shares.From the result of this paper, we can conclud that different ownership structure make a company performed differently, even the company with the same ownership structure may show different performance because they belongs to different directors. We can draw a conclusion that ownership structure without the best structure.At last, I carried out empirical study about the effects of ownership structure on corporate performance beween the family controlled company and states-owned company. Then we can provid better method to practice reducing the stock share what was holded by the states. We also may probe a better ownership structure for family controlled company. It is necessary to further my research so that we can get better understanding of the above questions.