Influential Factors Analysis On Ownership Arrangement Of Foreign Capital Inflows

As the policy of reform and opening up being taken in our country, the inflows of foreign capital and its business activities in China have become a very important part of our economic development. Ownership arrangement is one of the most important strategic decisions which foreign capital must make when they enter Chinese market. The ownership arrangement is not only a crucial problem for foreign capital, but also an essential issue the listed companies should take into account.Based on a great amount of related literatures and combined the practical situations in Chinese stock exchanges, this dissertation performs empirical examinations on the ownership arrangement of the listed companies which being members of top 10 shareholders and board of directors respectively. Multiple linear regression analysis method is being adopted in this dissertation. The findings of this dissertation are as follows. First, there are significant correlations between the foreign capital ownership arrangement and the profit ability, the restrictive policy and the proportion of stated-own shares. Second, the company size also has a significant correlation with foreign capital ownership arrangement when only corporation factors influences are considered in the study. Third, the other factors, such as culture difference, company location, industry match, market potential, do not show significant correlations with ownership arrangement of foreign capital. Furthermore, this dissertation makes a qualitative analysis focus on the factors.The main contribution of this dissertation is that it adopts sample and data from the listed companies, so it makes an exploration research in the field of foreign capital ownership arrangement and reaches different findings with previous study conclusions.