Optimizing The Share Structure Of Listed Companies

The corporation governance has become the focus issue in the whole world. The view that share structure is the foundation of the corporate governance has been accepted abroad. The essential features of share structure include that the share structure is highly centralized, the proportion of the uncirculative shares is too high. All these have produced the serious adverse sequent to the corporation governance. So it is very important to optimize the share structure and then perfect the corporation governance of listed companies. The first, the author makes a general research of the relationship between the share structure and the corporate governance. We can draw a general conclusion from this chapter that the share structure have a trend of dispersion on the whole but has different characteristic in each country, which makes a different influence on the corporate governance. The second, the author presents two pattern of share structure and orporate governance in the world which are Great Britain&America type and Japan&Germany type. The share structure of Great Britain&American have a characteristic of the scattered shares and no controlling shareholders exist. The characteristic of Japan&Germany type is that the shares are highly concentrated in the hands of the legal entities and organization investors. Thus the incident of abusing the rights of shareholders is easier to take place than abusing the power of management,and the external corporation governance is difficult to work. So it relies on the internal corporation governance mainly. The third, the author describes that the characteristic of the share of China's listed companies can be summed that the share structure is highly concentrated by state-owned shares and which can not be circulated. These have adverse effect on the corporate governance of the listed companies. The forth, the author points out that nowadays in China multiple controlling shareholders is the best way to solute the problem of share structure. In this section, the author uses two ways to certify that sharing control can protect minority shareholders'benefits and improve the value of listed companies. The last, the author gives out some suggestions on how to optimize the share structure so as to improve the corporation governance. The state-owned shares reducing plan is the main measure of optimizing the share structure.