The Research On The Relationship Between Ownership Structure And Firm Value Of Real Estate Listed Companies

Since the inception of China's capital markets in 1990, Chinese listed companies have undergone tremendous changes on their quantity, asset size, company system, economic benefits, ownership structure and other aspects. Among them, changes on ownership structure are fairly obvious and rapid which also are eye-catching. Of course, different industries have many differences in their ownership structure status because of their differences in national policy, industry environment and stages of development. According to corporate governance theory, the company's ownership structure determines corporate governance mechanisms and the effect of governance, thereby affecting the company's long-term value. Therefore, the research on the relationship between ownership structure and firm value is increasingly becoming an important issue of corporate governance. China's scholars have kept relatively high enthusiasm on the study of this subject and have yield rich findings of studies, but there is no agreement. To explore the reasons, we find that the more important reasons may be time difference in study and inadequate considerations on industry factor between researchers in addition to their different study methods, sample selection, indicators and other aspects. Therefore, this paper takes real estate industry as its research object and uses new perspectives and data to explore the relationship between ownership structure and firm value in real estate listed companies, in order to provide targeted advices on ownership structure, corporate governance reform and the enhancement of firm value of real estate industry.In research methodology, empirical research is mainly used in this paper and the relationship between ownership structure and firm value is examined from the aspect of equity and ownership concentration. In the empirical part, it selects fifty-two normal real estate companies of A share which listed in Shanghai Stock Exchange and Shenzhen Stock Exchange before 2003, and then their announced data of 2004,2005,2006,2007 and 2008 are chosen to research the relationship between ownership structure of the real estate listed companies and their value. The empirical results show that: (1) there is no significant correlation between state-owned share ratio and firm value; (2) corporation share ratio is negatively correlated with firm value; (3) between circulation share ratio and firm value, there is a kind of inverted U quadratic-curve existing, and the pole value appears when circulation share ratio rises to 75%; (4) ownership concentration has a negative correlation with firm value.At last, the paper forwards four proposals on the optimization of ownership structure and the improvement of company value for real estate listed companies based on the current development state of real estate industry and the results of above study. That it is: (1) develop rationally with focusing enterprise connotation and social responsibility; (2) pay adequate attention to the role of corporation share in corporate governance; (3) optimize the structure of ownership concentration and make equity checks and balances; (4) enhance the strength of external governance and oversight.