Ownership Structure, Corporate Governance And Corporate Performance

The governance structure has a significant influence on the firm performance, and the ownership structure is an important component of the governance structure. The ownership structure has a more tremendous influence on the management incentive, the purchase annexation, the power of attorney competition and the surveillance and many other aspects. In a sense, the ownership structure is the deep-seated problem of the governance structure. The western scholars have studied on this very thoroughly, but in domestic, this aspect research was comparatively short of. Today, China's enterprises extensively carry out the modern enterprise system reform, our country's capital market continues to expand, and the number of listed companies unceasingly increases. To delve into the mechanism of ownership structure and the best ownership structure design is a very meaningful work.Firstly, in this paper the domestic and foreign research situation of the relationship among the ownership structure, the governance structure and the corporate value is introduced. Next, the ownership structure connotation and its impact on corporate governance are simply discussed. Then, the method of the panel data modeling and the test procedure, which built the foundation for the empirical analysis, is introduced. In addition, the present situation of ownership structure of the listed companies is analyzed; the possible problems compared with other countries are pointed out. In the following empirical study, this paper uses the panel data from listed companies in China from year 1998 to 2005, chooses five typical industries as samples, and uses a panel data methodology to carry out the study. The literature using the pooled least squares regression to analyze the panel data may neglect the characteristics of the panel data. This paper overcomes the shortcomings, using the panel data model analysis method to analyze, in order to reflect real and effective relationship in the greatest degree. Then, the total sample and the industry-related sub-sample correlation analysis and the panel data model regression analysis are separately carried on. The conclusion of this paper is obtained on this foundation and the proposals are put forward. The main conclusions are as follows:1. From the correlation analysis, the management shareholding ratio has the positive relevance with the firm performance in a certain degree. From the panel data regression analysis, a different result is obtained. The inconsistent result implies that, in China, the function that the management level holds the stock to enhance the firm performance is difficult to display.2. The results offer evidence of a positive effect of the degree of control with regard to the firm performance. We also find a significant relationship between the ownership structure and the firm performance ,but the empirical results varies in the 5 sample industries ,in order to find a real connection between them ,more mini-sample analyses are necessary.