Concentration Ratio Of Shares,Investor Protection And Corporate Performance

In this paper, I put concentration ratio of shares, investor protection and corporate performance in the identical frame system, and carry on the analysis. Different from previous research, based on the "legal theory" of the protection of investors, this paper defined the "investor protection" from the angle of listed company, and selected 164 listed companies carrying on empirical analysis. The findings indicate: the listed companies which protect differently to the investor also can cause firm performance remarkable difference, when the investors are protected better by the company, the agency cost is lower, and the firm performance is higher. On the meanwhile, this paper also studied concentration ratio of shares. I believe the effect of concentration ratio of shares on firm performance was influenced by investor protection. I studied the legal protection and equity situation in our country, and found that the legal protection to the investors was still imperfect, while the high concentration of shares was an effective alternative mechanism, which contributed to firm performance; but Z index was negatively correlated with firm performance, which indicate the largest shareholder was detrimental to firm performance. In view of this, this article unified newest 《Securities Law》 and 《Company Law》 as well as division reform of share ownership, and put forward a series of proposals about investor legal protection, the improvement of ownership structure ,and the perfect of corporate governance.