An Empirical Study On Relationship Between Ownership Strueture And Company Achieve Of The Listed Companies Of Jilin Province

Ownership structure determines the company's internal governance arrangements and some of the company's external governance measures ,at the same time it affects corporate governance. Generally speaking, ownership structure determines the company's board of directors, board of supervisors, management, as well as the interrelationship between the three,which means the different distribution of power and the distribution of benefits, because the different Stakeholders have the different status and investment objectives in the company, they will make different governance decision-making, including the conduct of shareholders, incentive constraint of managers, the company management and other corporate governance mechanisms in decision-making, which ultimately allows the company shows the different performance. Therefore, ownership structure and business performance is closely related to each other, linking by corporate governance.In different market environment, and under the influence of different historical, cultural, social and economic environment and other factors, the equity structure have there own different characteristics in different countries. Most of China's listed companies is reformed by state-owned enterprises, as an old industrial base, Jilin especially. Based on the actual situation ,this article focuses on finding the way how corporate governance impact corporate performance by analyzing detailes of the shareholding structure in jilin's listed companies comprehensively,then it comes to the conclusion,hoping improving companies'performance by changing the shareholding structure.The article first introduces the research results on the subject we talked about of scholars at home and abroad of the current study, then based on these theories we starts our discussion. In the second chapter,the article adresses the related concepts and content of equity structure and corporate performance ,and explain how to measure these two categories. In the coming pages,we analyzes the mutual Interaction Mechanisms mechanism between the ownership structure and corporate performance, and how the ownership structure impact on corporate performance. Finally, on the basis of prior theoretical the article assums some hypothesises, Then we choose the listed companies in Jilin Province as study sample, ROE and EPS as explained variable;SOSP,LSP,CSP,CR1,CR5,H5 as Explanatory Variable company scale(assets),liabilities, as well as the company's growth rate controlled variable and 2005-2007's data on ownership structure and performance and uses descriptive analysis and regression analysis to prove empirical assumptions.Empirical results show that: (1) concentration ratio of shares in listed companies in Jilin Province have a positive correlation with corporate performance .is a The higher the concentration of ownership is, the better corporate performance shows. This is because China is in a transition economy period, the law do not protect the interests of outside investors enough,so the small and medium-sized investors have"free-rider" behavior, the relative concentration of ownership makes the major shareholder has sufficient incentive and ability to supervise agents, thereby reducing agency costs. (2) state-owned shares plays an active role in governance in Jilin Province's listed companies. The higher the proportion of state-owned shares is, the better the performance shows. (3) in listed companies of Jilin Province, the legal person shares is a positive correlation with the outcome. (4) the proportion of circulation stock was not significant negative correlation between the Company's performance.On the basis of empirical research in this paper, we propose some recommendations.(1) keep reducing the proportion of State-owned shares, increasing institutional shares and citrculation stock, State-owned shares can not perform an effective monitoring on managers, thereby reducing the supervision and control on management, which will be enlarged by the higher State-owned shares, so we have to adhere to increase national ownership. (2) develop legal person-BVI companies. Adjust the equity structure of listed companies to make the relative legal become the majority shareholder, promote corporate governance structure and efficientive governance through the active participation of corporate shareholders.(3)The majority of the circulation stock holders are Speculative, they do not care about the companies'operation and management,which will immerse the company into a situation of internal control, so the listed companies should form the major shareholder of the ownership structure, improve the governance structure of corporate governance through Union and balance of large shareholders with each other.(4) foster qualified institutional investors. Governments need to nurture qualified outside institutional investors. With continuous improvement of the legal environment and continues development of the companies, the ownership structure should be composed of a number of corporate shareholders and some institutional investors, and the situation of balance between the shareholders of the situation not only effectively checks on the majority shareholder,but also effectively supervises of the managers .(5)strengthen the company's internal governance and oversight. reforming of the shareholder structure will take a very long period of time, the current reality of high concentration of ownership will not change in the short term, so the main idea of corporate governance should focus on the ownership structure and controlling.we need strengthen the company's internal governance mechanisms and the construction of the internal control system.(6) take more attention on small and medium-sized shareholders. share structure reform is a daunting task, it relates to tens of millions of shareholders'vital interests , a few trillion of quality state-owned assets and the redistribution of wealth in China's and China's market-oriented reform process. we should consider Enterprise as a whole, forward the reform of corporate governance structure while pushing the share reform.(7) consider the characteristics of different industry. during enterprise reforming, we should the appropriate choose maintaining the country holding the shares or gradually withdrawing based on the industry enterprises in,At the same time, design reasonable legal person shares and circulation stock to improve corporate governance of listed companies.