Study Of The Relationship Between Ownership Structure And Firm Value

The relationship between ownership structure and firm value is always the focus of debate theoretically and practically. There are lots of studies in this field, which come into conclusions that firm value is the function of ownership structure and that ownership structure has a positive or negative influence on firm value. Ownership structure is the property right basis of corporate governance, which determines the distribution and the balance of corporate control right, the cost and the risk of agency , the behavior and the performance of corporate governance. Based on the reasonable ownership structure, corporate governance can become perfect, the good performance comes true and firm value is upgraded.This paper reviews theoretical results of ownership structure and firm value and the interaction between them, uses the method of empirical research and standardized testing, on the basis of anglicizing ownership structure status of the listed companies, from investment opportunity set, the relationship between ownership structure and firm value of Chinese manufacturing listed companies is verified. Results shows: (l)In manufacturing listed companies, the biggest stockholder and ownership concentration are significant positive related with firm value. And the relation between shareholder balance and firm value shows a significant U-shaped curve. (2)In the low IOS of the manufacturing listed companies, the biggest stockholder is significant "U" related with firm value. Shareholder balance is positive related with firm value. Ownership concentration has nothing to do with firm value. (3)In the high IOS of the manufacturing listed companies, there are "inverse U" relation between the biggest stockholder and shareholder balance with firm value. And ownership concentration has nothing to do with firm value.