The Diversification Of Stock Ownership's Impact On Firm Performance Of Chinese Listed Companies

The diversification of ownership structure determines how the residual claims and residual control right are divided among the investors , different ownership structure shows that how the benefits and rights are distributed among different investors, different shareholders have different status and different investment aims, it will lead to dirrerent corporate govermance and each corporation will show its own performance. So the ownership structure is closely linked with enterprise performance, whether the ownership structure's installing condition is reasonable has a decisive effect for the efficiency of the corporate governance. When designing the corporate governance , we should set up a reasonable common ownership structure . In China , most if the listed companies stem from restructured state-owned enterprises . So , what on earth is the relationship between ownership structure of a listed company and its performance? How to improve the ownership structure of a listed company ? In this paper , the Chinese Competitive listed company in Shanghai and Shenzhen Stock Exchanges in year 2004,2005 and 2006 being used as sample, empirical researches on the relationship between the two are examined , and proposals on improving ownership structure are explored . The data of annual report that the listed companies announced are the main source of data that this paper carries on the empirical research .This paper first reviews on the foreign learners and the domestic learners'study results , comparing the competitive and monopolistic trade of ownership structure . In China , ownership structure is unique because of history , cognition and reality , the proportion of state-owned shares has gradually reduced, the proportion of corporate shares is large , the proportion of corporate shares is gradually raised, the frist major shareholder often has the absolute control over the company . Aiming at the particularity of ownership structure in listed companies of competitive trades in China , the author analyses the characters of all kinds of main ownership compositions . There may be lack of effective shareholders , coalition of supervisors and operators in the case of state-own shares ; corporate shares have the characters of definite investors , aim at investing and dealing , long time holding stock ; corporate shares have characters from short time to long time, not having control rights.Based on the general characteristic of structure ownership and corporate governance of Chinese listed companies , the hypothesis for this paper is proposed . Descriptive analysis and relevant counter researches on the variables of the sample are done , and the model equations are proposed . This paper uses the liner regression and One-way ANOVA as its technique to perform its empirical analysis.Based on the data of listed companies in competitive trades suiting study , we can draw the conclusions as follows : the ratios of state-owned shares are not remarkably corrdlated with CROA , are not remarkably corrdlated with COE ; corporate shares are not remarkably corrdlated with CROA , are remarkably positive corrdlated with COE ; marketable ownerships are not remarkably corrdlated with CROA , are remarkably positive corrdlated with COE . Herfindahl₅ is not remarkably corrdlated with CROA or COE ; the ratios of first major shareholder are remarkably negative corrdlated with CROA and COE.At last , this paper gives several related suggestions about the optimization of the diversification of ownership structure in competitive trade in China.