The Study On Relationship Between Ownership Restriction, Connected Transaction And Firm Value

It is the core of modern enterprise system to establish a perfect corporate governance system which must be able to limit the right of the management, coordinate the benefits of stakeholders, strengthen the competitive capacity and raise firm value. Ownership structure is one of the most important branches of the corporate governance theoretical study and one of the most important factors of firm value.It is common for state owned companies being listing through remolding with the stock system that state shares and artificial person shares hold all the trumps in the overall shares of companies.In recent years, the phenornenon that initiators of private listed companies hold the most shares of the companies has become more and more prominent, big shareholders infringe upon the benefits of small shareholders by connected transaction. To study the influence of ownership restriction, connected transaction on the efficiency of firm value is especially more important at present.Based on the prior studies, the thesis chooses the A-share listed companies in Shenzhen Stock Exchange as samples determines the proxies for listed companies' firm value as the explained variables, takes ownership restriction ratio and ownership concentrate ratio as the explaining variables and takes growth, leverage and firm size as the control variables. Then, the thesis establishes a multi-element regression model which is used to conduct an empirical research on the influences of ownership restriction, ownership concentrate on the firm value of listed companies.The empirical results, indicate that there is a negative relationship between ownership restriction and connected transaction, and a significant positive relationship between ownership restriction and firm value. Ownership restriction can help to raise the company's value and cut down the connected transaction. There is a significant negative relationship between connected transaction and firm value. The big shareholders mainly use the connected transaction of Guaranty, Lend and Goodsdeal to encroach on the interests of other shareholders, especially small shareholders.