Analysis Of Relation Between Ownership Concentration, Outside Blockholders And Firm Performance

It is the core of modern enterprise system to establish a perfect corporate governance system which must be able to limit the right of the management,coordinate the benefits of stakeholders especially large stakeholders and median-small stake-holders,strengthen the competitive capacity and promote firm performance.Closing to the full circulation of the equity,market and law environment have much stronger impact on the development of ownership structure in our country.On the base of the Path Dependence theory and industry dependence,first,we introduce the factors that influence the current main types of ownership structure and corresponding corporate governmence system,then,we discuss the trend of the development of outside block holders and the correlation with firm performance in different industries.This paper selects listed companies in 2004 as sample,following and analyzing them by the observation of centralization of equity and changes in check-and-balance and evolution of relationship with performance measure,grouped by year and industry.Empirical study shows that the centralization of equity and the evolution of check-and-balance are different in different industry,which mainly depend on industry and path dependence theory exists in the course of evolution of equity structure in different industry.Regarding the correlation between check-and-balance and performance,changes in equity check-and-balance causes obvious change in correlation,so is the industry difference,reflecting that there are different optimal equity check-and-balance mode in different industry,enhancing the function of performance measure.