Empirical Research Of Share-Holding On Operating Performance Under Circulation Character Transformation

In order to solve the problem of securities business, a reform was starting in spring of 2005. Going with the course of the reform, the long boring problem of non-tradable shares will be resolved drastically. During the further process of the reform, the securities business step to the period of the last reform. The new period has great significance not only to the current holders but also the non-current holders. So there are only almost fifty corporations have no end in the reform, but the thorough completion still has huge difficulties and far-reaching meaning. In the paper I try to use the analyses between the behavior of the control holders and corporate performance to give some constructive suggestions and references about the reform.The behavior of the control holders is a very important form of the Ownership structure. And Ownership structure is the interior structure of corporate owners, which determine the corporate governance and the character of Principal-Agent between owners and operators, and the efficiency of corporate governance is embodied by the corporate performance.In the paper, I analyze the relation of control actions and corporate performance firstly, then by collecting data of 788 manufacturing companies listed in shanghai stock exchange of 2004, this paper analyzes the influence of the characters about ownership structure on corporate performance by means of statistics and econometrics methods. In this paper, ownership structure includes the concentration rate of shares, the property of shares and the negotiation of shares. The concentration rate of shares includes CR1, H5 and Z; the property of shares includes state-owned shares and corporate shares; corporate performance includes CROA, ROE and EPS. Based on this, through regression-analytic, Several conclusions have been drawn. Firstly, the concentration rate of shares have influences on corporate performance: CR1 and Z are negative correlated with corporate performance, but H5 is positive correlated with corporate performance. Secondly, the ratios of state-owned shares are negative correlated with corporate performance. Thirdly, the ratios of corporate shares are remarkably positive correlated with corporate performance. Fourthly, the ratios of negotiable shares are remarkably negative correlated with corporate performance too.Based on these conclusions, we have some policy recommendations. Firstly, ownership concentration should be kept properly in Chinese listed companies and the shareholding percentage of large shareholders should be declined to achieve ownership control. Secondly, decrease the percentage of state-owned shares by means of selling them to artificial persons. Problem of the absence of the available state-owned shareholders should be solved as soon as possible. Keywords Non-tradable shares; Share-holding behavior...