Research On The Relationship Between The Pyramid Equity Structure And The Company Value In Chinese State-owned Listed Companies

Pyramid equity structure is a widespread kind of ownership structure in securities markets in our country. Equity structure is generally considered as an important property rights on which influence the governance of listed company. Different ownership structure has biggish influence of listed companies and the stock market and even the whole country's macro-economic healthy development. Therefore, Research on the pyramid ownership structure of our country's state-owned listed companies is necessary, analyses the causes of the structure and its influence on company's value not only helps deepen the understanding of the ownership structure, but also helps to enterprise development, regulators regulation and social stability.The aim of this paper is to give some tentative study on formation of the pyramid equity structure of China's state-owned listed companies from institutional factors, so as to enrich the knowledge of the pyramid ownership structure. Besides, further analysis the influence to company's value of pyramid equity structure of state-owned listed companies provide reference material, which for reform the ownership structure and perfect the management of state-owned listed companies. Impact upon SSP(state-- structure -- performance) founded by professor A. Allan Schmid, this paper analyses the impact following paradigm of institutional state-- pyramids ownership structure-- enterprise value (enterprise performance). Firstly, this paper explores how the inherent characteristics of the interdependence between people decided by system background influence the formation of ownership structure of the pyramids from both the path of informal institutional and formal system .This paper believes that the pyramid in the system of ownership and the informal institutional exist complementary relationship, and is alternative to officially system. Secondly, this paper further analysis the pyramid of ownership and control ownership structure characteristics, and proposes hypotheses upon the theoretical analysis of its relationship with the enterprise . Finally, based on the hypothesis, this paper set up an empirical analysis model to do a emprical study,with relational date of 306 pyramid state-owned listed companies in 2007. The results show that the higher the ultimate control cash flow rights ratio of our pyramid state-owned listed companies, the higher the enterprise value; the greater the separation of the ultimate control ownership and control, the lower enterprise value. Through the above analysis,this paper give the following suggestions. On the one hand, it should improve China's stock market regulation; on the other hand, it should reinforce the management of actual controllers of stated-owned listed companies, so as to improve the ownership structure of state-owned listed companies and companies value.