An Empirical Study On Relationship Between Ownership Structure And Corporate Performance Of Listed Companies

The relationship between ownership structure and corporation performance has alwayse been a hot topic being focused by both the theoretical and empirical researehers.Theoretically, as the property basis and important component of corporate governance,ownership structure influences corporation performance by means of governance mechanism such as incentive and supervises,exterior take-over and competition in agent right and so on.However, there are not consistent conclusions to the study on ownership structure and corporate performance empirically, no matter at home or abroad. Based on the theories in existence and empirical research frameworks,combining particular traits of ownership structure in china listed firms ,this paper tries to check up the relationship between ownership structure and corporation performance.Centering on the correlation between ownership structure and corporation performance,this paper reviews and evaluates related research literatures,defines concepts and analyses mechanism. This study presents how the ownership structure influences corporation performance according to principal-agent theory and corporate governance theory.The empirical study takes industry factor as an entry point and distinguishes the different degree of competition among different industries.This article chooses three industries listed in Shanghai and Shenzhen Stock Exchanges,including electricity, gas and water production and supply industry, machinery, equipment, instrument manufacturers, wholesale and retail trade.The data used ranges from 2006 to2008.EPS is interpreted as the variable, and the proportions of state-owned shares,corporate shares, individual shares and the fraction of the shares owned by the five largest shareholders are interpreted as the explanatory variables. The size of the companies, the financial level and the inereasing rate of net profit are interpreted as control variables. This paper adopts the method which combines determining nature research and quantitative analysis,uses the statistical methods of correlation analysis and multiple linear regression, investigates the relationship between ownership structure and corporation performance from angles of stock composition and ownership concentration. Empirical results are as follows.Firstly, the ratio of state-owned shares is positive correlated with corporate performance in monopolies,however,in competitive industries, it has no significant relation between the proportion of state-owned stocks and corporate performance.Secondly, the ratio of corporate shares has positive relation to corporate performance.Thirdly, the ratio of individual shares is negative correlated with corporate performance.Finally, the concentration of ownership has positive relation with corporate performance.On base of deep analysis above, we have some policy recornmendations to opimize the ownership structure of listed companies in our country.