A Demonstration Research On The Relationship Between The Equity Structure And Corporate Performance Of Listed Companies

The equity structure and corporate performance of listed companies is a hot topic and a difficult problem focused by both the academia and empirical researchers, but the conclusions reached differ greatly as there exist different perspectives on this subjects. This paper look the listed companies in China as objects and reveal the relationship between equity and the corporate performance through analyzing the data of equity structure and corporate performance published by listed companies. The relationship between equity structure and corporate performance of the listed companies are researched based on empirical study and hypothesis test. Results show that there exists a significantly negative relationship between the state structure ratio and corporate performance; corporation share ratio and the company's performance are positively related; circulating share ratio is neither positive nor negative; and the relationship between the degree of equity and corporation performance may be complicated. Based on the results above, this paper discusses further the effect of corporation share to corporate governance structure, get the best stock-holding zone of corporation share constructs and relative-control-share pattern of the listed companies, and puts forward assumption of reasonable equity structure of listed companies in China. Wish the conclusions and the analysis's approach above to be a useful reference for further researches on corporate governance practice in China.