An Empirical Study On Ownership Structure And Firm Value Of Electric Listed Company Of China

The relativity of ownership structure and firm value is always an important thesis in corporate governance; there are plenty of theoretical and empirical studies which led to different results all over the world. This paper firstly reviewed the study both here and abroad, then discussed the theory of ownership structure and firm value and studied the present status of the ownership structure in electric listed companies and the relationship between ownership structure and firm value. In the empirical study, focusing on the listed companies in the non-competitive, natural monopoly power industry of China, this paper did the small sample empirical study to analyze the relativity between state-owned shares, corporate shares, tradable shares, concentration ownership structure and firm value in this industry, by choosing the Price-to-book ratio as indices for measuring the firm value and using the Fixed-Effect panel data model. The result shows that there is no significant correlation between the firm value and ownership structure, ownership concentration degree; this is because the power industry is directly controlled by the state and hardly influenced by the ownership structure. This paper suggested improving the ownership structure and increasing the firm value.