Empirical Research On Ownership Structure And Governance's Effect About Private Listed Companies In China

Ownership structure is the important fact which influences the corporate governance's effect. The company's ownership structure can make positive or negative effect on corporate governance. The optimized ownership structure will make significant influence on the improvement of the corporate governance. With the promotion of the market economy of our country in recent years, private economy plays important role in national economy day by day. The research about the relationship between ownership structure and corporate governance becomes the key things to promote the private economy to a deep extention and improve the whole economy to be a harmonious development.The paper begins from the relative theories of ownership structure and corporate governance, using the qualitative and quantitative methods to discuss the relationship between ownership structure and corporate governance, as well as selecting the data from the year 2005 annual reports about 305 private listed companies and 876 non-private listed companies as the sample. After using the comparatively analysis method to discuss the differences about the private listed companies and non-private listed companies in operating ability, profitability, capital structure, market evaluation, ownership structure and the banlance of the ownership, the paper adopts correlation analysis method and regression method to propose the hypothesis, make the model and do the test of the ownership structure and corporate governance.Through the empirical test, the paper has the following findings: (1) After controlling the scale of the company and the financial risk, the author has had a conclusion that privatization can improve the company's performance. (2) People like investing on private listed companies which have more financial risks both on short-term and totally. (3) Comparable to the non-private listed companies, private listed companies have lower concentration and higher balance of the ownership. (4) In the ownership structure aspect, state-owned share shows siginificant negative effect with corporate performance, corporation share and liquid share show the siginificant non-linear relationship as "U" curve. (5) Managers and employees hold a small share which has little influence on governance performance because the control market and the market economy system are not perfect. (6) From the balance of the ownership, concentration of the ownership shows non-linear relationship as "U" curve, meanwhile the relationship between corporate governance'effect and H index, the balance of the ownership, Z index are all indicate that modetate concentration, having six to ten biggest shareholders as the legal person can contribute to promoting operating performance which therefore should become the target model for optimizing the ownership structure.Regarding the empricial research as the basis, the author proposes several constructive suggestions and measures to improve the corporate governance's effect of private listed companies on the basis of solving the problem in ownership structure. Focus on the ownership structure and governance's effect about private listed companies in China is totally a new research area, thus the author has scarcely found any literatures in this area. Secondly, the test of the privatization is a creative step to test the corporate performance of the private and non-private listed companies carefully. The variables in the dissertation is including several aspects, not only the book value variables but also the market value variables, not only refer to the assets but also to the main revenue which can't control change more, then the model can evaluate more perfect.At last, the dissertation uses description analysis method to pre-test the data, then the correlation analysis model and the multiplicity regression model make the research more excellent and believeable. Moreover, the result of the one company having six to ten biggest shareholders as the legal person is better to it and the result of the relationship between liquid share and corporate performance is a curve, are all creative conclusions.