Research On Build Of The Subject Of Encouraging And Restraining In Chinese Listed Companies

Nowadays, as financing industry begins to play a bigger role in national economy, the stock market has greater influence in the operation of the economy. As it pools companies for investors, reallocating the capital in so doing, it is indirectly adjusting the operation of the economy. Therefore, the performance of stock market mirrors the developing condition of a country's economy. For the sound functioning of stock market, the listed companies are supposed to be ruled by modern corporate governing law. So the effective corporate governing is on the top of researchers' list across the world. The purpose of the paper is to discuss how to build a subject of encouraging and restraining in a list company. Through theoretical evidence and case study, the paper points out that the irrational distribution of equity is the root of the poor operating performance, thus we propose a new approach in settling the Stock right structure for Chinese listed companies.First of all, the paper analyzes that lack of the subject of encouraging and restraining is the cause of poor economic efficiency; secondly, the advantages of both high concentration equity and the low one are compared in a theoretical way. Thirdly, the statistic dates of the listed companies evidence the negative influence due to lack of the subject of encouraging and restraining. At last, in view of the reform that the treasured shares are allow to floated, a new approach in settling the Stock right structure for Chinese listed companiesAs we discover overdue equity reform and overlooked minor role of stock market attribute to the lack of The subject of encouraging and restraining, which in turn causes low concentration of equity, the listed companies are virtually still state-run enterprises, and the numerous individual stock-holders have no voice in the enterprises' management but daydreamers expecting to profit from the growth of the enterprises. To introduce a multi-polar distribution of equity, therefore, is the fundamental way to settle the problem. To sum up, the paper addresses the poor performance of list companies from the analyze of irrational distribution of equity, and proposes that optimized equity share can encourage the construction of The subject of encouraging and restraining. In case study, statistic is adopted to guarantee the accuracy and objective of the data analyze.