Ownership Structure And Liquidity: Evidence From China Stock Market

Prior to the 1960's, Demsetz put forward the theory of transaction costs, then the market microstructure became the focus of western financial theories, the most important focus on the issues :how to evaluate the liquidity and improve it.Previous literatures have delivered a host of contributions to the issues concerning ownership structure and corporate performance relationships. While foreign scholars have made advances on the study of ownership structure and liquidity relationship, domestic academicians almost all tend to neglect to take market liquidity -the key intermediate variable affecting both ownership structure and performance - into serious account. In light of the fact that China stock market demonstrates low level of liquidity. The paper has made the first efforts to look into the interaction between ownership structure and liquidity in an attempt to answer two fundamental questions:Ⅰ. What kind of relationship the ownership structure andliquidity hold? AndⅡ.what kind of governance structure serves the best interest of an improved liquidity? Centering on these two issues, the paper moves on to:Ⅰ. Microstructure theory sets off from the marketplace , is tied in wedlock a China's actual situation, characteristic having analysed the Chinese marketplace microstructure; Analyse stock flowability influencing factor , endanger as well as the liquidity shortage may bring about; By seeking large amount of document, aspect has discovered and summed up stock right from theory structure and the flowability appearance relation.Ⅱ. Brief the process explaining development of our country stock market and current situation, thorough analysis our country stock market have problem , priority have studied the cause that the problem produces.Ⅲ. The sample book choosing in the homeland bond market carries out statistic analysis. The demonstration passing to 22 Shanghai Stock Exchange listed company is checked, the main body of a book go into finds that: Institutional investor has pure effect to stock flowability: With whose shares of holdings increasing by,business price differences will increase by on the marketplace with lessening , depth , lower unit depth price differences are also to reduce; Inside of company the person flowability to corporate stock is horizontal have certain restraint, company's shares of holdings disperse increasingly, flowability cost is increasingly low; The ideal liquidity requires that the company that stock right disperses governs structure, but is not stock right all together.Ⅳ. According to the demonstration appearance relation between structure and flowability studying achievement , system have summed up Chinese bond market stock right, the related policy suggestion suggesting that includes: Bring the institutional investor core force into play, the flowability improving Chinese bond market is horizontal; Treat and appraise the State-held share and the impact of institutional shares over liquidity cautiously, bring the person into play sufficiently affecting an effect to the marketplace facade; That structure disperses stock right rationally is that Chinese listed company is ideal govern a pattern.