The Empirical Study On Ownership Structure And Corporate Performance Of Listed Company In SME Board

The relationship between ownership structure and corporate performance is one of important contents of corporate governance research. As an important part of corporate governance structure , ownership structure decides the fundamental nature of corporate agency problems,plays an important affection on corporate development strategy and the performance.Focusing on the listed company in SME (Small and Medium-sized Enterprise) Board, which is the most vigorous board in Chinese stock market, the paper makes a deeper study on the characteristics of its ownership structure, and the relationship between ownership structure and corporate performance, aims to provide some useful conference for the future development of the SME Board.In this paper, firstly, a comprehensive review of the Western literature on ownership structure and corporate performance is provided, also the review of the Chinese research on this topic. Based on the review, we make an exposition of the characteristics of the listed company in the Chinese SME Board; and give reasons from the angles of social culture and the corporate lifecycle itself.Secondly, we set a sample which consists of the total 38 listed company in the SME Board by the end of the year 2004, using the data from its current annual report, make a empirical analysis on ownership structure and corporate performance, the ownership structure includes concentration of ownership, proportion of the first large shareholder and proportion of managerial shareholding.The paper also sets a comparing sample, which is made up by the listed company chosen from Shanghai stock market; the sample's companies are the same field as the listed company in SME board, with similar size and closer time of IPO's too. We hope to come to understand the relationship between the ownership structure and the corporate performance about the Chinese SME aided by the studying of the comparing sample.In the paper, we find that under the current stock market circumstance and the situationlacking of good shareholder protection in China, there are controlling shareholder in the listed company and relative concentration of ownership, the actual controller's ownership is presented by a concealed status in the listed company.The empirical results indicate that the concentration of ownership and the proportion of the first large shareholder have no significantly correlation with the corporate performance to the listed company in the SME Board; but there is significantly correlation between managerial shareholding and the corporate performance, at this point, we think the paper give a empirical support to listed company for carrying out managerial shareholding incentive.