An Empirical Analysis Of The Relationship Between Ownership Concentration And Corporate Performance Of Agricultural Listed Companies

The relevance between corporate ownership structure and corporate performance has been being a hot topic focused by the academic researchers, but the conclusion reached by researchers differed greatly because there are many different perspectives on this subject.Otherwise these researches provide not only the clues but the methodology. With the method of empirical study and normative study, this paper took the agricultural listed companies as objects, through analyzing the data of corporate ownership structure and corporate performance published by the companies, to reveal the relevance between corporate ownership structure and corporate performance.This paper gives an relevant literature review, and discuss how the ownership concentration impact the corporate performance by affecting the corporate governance mechanisms such as managerial incentive, proxy voting contests, supervision mechanism and hostile takeovers.then this paper mainly bases on the data of agricultural listed companies in 3 industries over the 2004 -2006 period, and uses firm performance indicators which determined by factor analysis as dependent variable, equity concentration rate of shares as independent variables while the control variables are company's size and asset structure,and make empirical analysis using the statistical software such as Spss,Eviews in the empirical analysis, we present a statistical description through equity concentration ratio indexes CR₁, CR₅,CR₁₀, H₁₀, Z and DR₅, and use panel data econometric model to study on the relationship between equity concentration rate and corporate performance. The main results are as follows: First, the statistical analysis shows that the most outstanding feature of the equity structure of China's agricultural listed companies is that equities are relatively concentrated to the biggest stock holders and highly concentrated to the top five stock holder, the whole assumes present declining trend. Second, the shares of the largest shareholder has positive correlation with corporate performance in agricultural listed companies. Third, hertz fragrance index has negative correlation with corporate performance in agricultural listed companies. Forth, balanced concentrated ownership structure for bettering corporate performance.At last, according to the results of empirical research and the current situation of the security market of our country agricultural listed companies, it draws the conclusion:firstly, keep certain stock right all together degree; secondly, reduces the disparity between the proportion of the major stockholder, enhances balanced concentrated ownership structure; thirdly, strengthens the bank's function in supervision mechanism; finally, steadily promote and the shareholding division reform , improve the liquidity of the stock.