An Empirical Study On The Ownership Concentration And Comprehensive Performance Of The Private Listed Companies

Ownership concentration in the study of the ownership structure has always occupied an important position, especially for private enterprises, whose share properties is clearer. So when we study the ownership structure, we mainly focus on the ownership concentration. Ownership structure is the basis of corporate governance, whose settings affect the efficiency of corporate governance structure and the performance of the enterprises. In this paper, taking the screening of 286 private companies listed sample in 2005, we give an empirical analysis of the ownership structure and corporate performance, try to find correlation between them and give some proposal about the optimization of ownership structure.This paper gives an relevant literature review, and make a theoretical analysis on the concentration of ownership and corporate performance, which is the theoretical basis of this paper. Then give descriptive statistical analysis and correlation analysis on the samples, and build models to study the relationship between them. But in the selection of measurement indicators for corporate performance, I think not only the single market index but also the single financial index can not represent the whole performance evaluation, so I establish a comprehensive performance evaluation system index that includes 11 financial indexes. I put to use factor analysis to overcome the previous deficiency in artificial weighted in this aspect which is considered as an innovation. Collecting data and setting up a verified Regression model with ownership concentration as explain variable and comprehensive performance evaluation system as explained variable are necessary.The empirical results show that there is a significant positive correlation between part of the shares indicators for concentration measurement and the performance in the private listed companies, discovered the "Mystery of concentrated ownership." Specifically: the existence of a moderate percentage range, which makes the company have an optimal performance; linear relationship between the top five shareholding ratio and integrated performance; and the existence of quadratic nonlinear relationship between the degree of equity and the consolidated results. But there is some correlation between indicators which can not pass significant test. We also found that the debt rate has a negative effect on the overall performance of the company; the correlation is not significant between the size of companies and the overall performance.This paper indicates that it is necessary for some kinds of the ownership concentration. We think that the big shareholders have the impetus and the capacity to stop the management level from power abusing, can monitor the management level more effectively, so as to enable operators to maximize shareholders' value.