The Empirical Analysis Of Ownership Structure's Effect On Performance Of Trust Companies In China

Ownership structure's effect on corporate performance has always been an important aspect of corporate governance research. The analysis of trust companies' ownership structure can stimulate healthy development of China's trust industry.This paper uses the principal-agent theory to study the impact of the trust ownership structure on performance as well as in view of the current situation of China's trust industry, and then discusses the way by which ownership structure affects performance. At last, it gives several policy advices for the healthy development of trust company.First of all, this paper describes the background and ideas of the research, and then recalls previous studies.In the second part, this paper combines the principal-agent theory with trust industry's situation. Further more, this paper analyzes the impact of equity concentration, the nature of the controlling shareholder on trust performance.The third part probes into the effects of the trust companies' ownership structure to the performance by empirical methods, then it gives some reasons to the research conclusions.The fourth part suggests that it is through affecting investment decisions and asset quality that the ownership structure affects the performance of trust companies, by analyzing the effects of the ownership structure to the non-performing assets rate.The fifth part of this paper analyzes ways by which trust ownership structure affects company performance through analysis on bad-asset rate of trust companies.Finally, this paper puts forward some recommendations on the optimization of trust industry's governance structure, hierarchical supervision and incentives and supervision of trust business.