Impact Of Ownership Structure On The Performance Of Corporate Governance

This paper concentrates on the impact of ownership structure on the performance of the corporate governance. The paper studies 103 listed companies that had issued their stocks in Shenzhen&Shanghai Security Exchanges from 2003 to 2008 in Eastern China. After comparing it with the ownership structure of non-tradable shares reform epoch, the result shows that the first share holder's control power and the ownership concentration ratio of listed companies decreases relatively, the proportion of state and legal shares decreases, the proportion of circulating shares increases step by step.This paper computes 7 financial indexes which are often used to measure the performance of corporate governance, such as the debt ability,the profit ability,the property management ability of listed companies. Based on the comprehensive performance using principle component analysis method, we utilize it to make empirical study of ownership structure.The conclusions from this empirical study as follows: operating performance is negatively related to the scale of state-owned stocks; the ratio of legal stocks take on moral "U" relationship with the operating performance; meanwhile, empirical results show the ratio of circulating stocks has nothing to do with the operating performance; Operating performances are negatively related to ratio of the largest shareholder and the index Z; moreover, the operating performance is positively related to the firm assets; and negatively related to the debt ratio.According to empirical analysis conclusion, this paper presents practical measures: first, listed companies should try their best to optimize their ownership structure; second, we should pay attention to the role of commercial banks in corporate governance; third, our government should promote the construction of capital market and make sure the information disclosure mechanism just, fair and open.