An Analysis Of The Effect Of Ownership Structure On The Performance Of Publicly Listed Companies In China

This article investigated the effect of the ownership structure on the performance of publicly listed companies in China with theoretical and empirical methods, providing the theoretical reasons and directions for the improvement of management and quality of publicly listed companies in China. This article investigated 120 sample companies using the data from 2004 financial report of publicly listed companies in Shenzhen and Shanghai. Simultaneously we investigated ten major shareholders of the enterprises as well as their basic situation through network resources. We mainly investigated the effect of the state shareholders, legal persons, the institutional investors, which are all of enterprises' ten major shareholders of publicly listed companies in China. The definitions of these three types of shareholders are not same with the definitions in the others. Because the definitions were not same, we reorganized the data in finance report. We used rate of return on common shareholder's equity (ROE) and the rate of sale return on common shareholder's equity (SROE) as the performance of publicly listed companies. Theories applied in the article mainly included the Coarse theorem and the principal- agent theory of contract theory. The empirical methods included description statistical analysis and multi-regression statistical analysis. We not only described main shareholders of the sample companies, but also investigated the effect of main shareholders on the performance of publicly listed companies. Firstly, we analyzed the effect of the ownership structure on the performance of publicly listed companies with theoretical method then we proposed the theoretical supposition. Secondly, we investigated the truth of supposition with empirical method. We got these conclusions: the state shareholders affect the performance disadvantageously; the legal persons affect the performance advantageously. Though the conclusions of the effect of the institutional investors on the performance were not unified, we could get some evidence from the statistical analysis which could support the theoretical supposition which was institutional investors affect the performance disadvantageously. Finally we provided suggestions according to conclusions of theoretical and empirical analysis.