The Research On Ownership Structure And Business Performance Of Chinese Listed Companies

When the capital market of China was established in 1990, most of the listed companies were reformed from national companies. In less than twenty years' development, the ownership structure of Chinese listed companies was changed continuously, and they still keep the characteristics of national company of China in many points. In order to make our country's capital markets a better development, study on the relationships between ownership structure and business performance of public listed companies in China has been being a hot topic focused by both theoretical and empirical researchers. However, there is not an agreement in the rich findings of studies. So a new study will be made with solid theories concerned, new study method, and new data in this paper, which is aimed at answering a problem of "what", in other words, what relationships on earth between ownership structure and business performance of public listed companies in China, and the "answer" will act as a reference for optimization of ownership structure and reforming of corporate governance of public listed companies in China.The main steps of study in this paper are as follows: First, a new review of literatures about the relationships between ownership structure and business performance home and abroad has been made, which viewed as the foundation of this paper; Second, a thorough review of theories about the relationships between ownership structure and corporate performance, which viewed as the theoretical foundation of this paper; Third, using principal components analysis to comprehensive evaluating corporate performance of listed companies; Fourth, using regression analysis to study the relationship between the ownership structure of listed companies and to draw the appropriate conclusion of the study; Fifth, propose policy recommendations of reforming ownership structure of Chinese listed companies.Through empirical analysis, the paper reached the following conclusions: First, the firm performance of listed companies is significant inverted U-shaped related with the ownership structure of the shareholding ratio of the first (L1), the ratio of the top five shareholders hold (CR5) and its square (H5); that is, holding the relative of listed companies' performance is better than others; Second, there was not a significant correlation between Z index of ownership structure that is the first major shareholders of listed and business performance.According to the conclusions of this paper, make the following proposals for the reform of ownership structure of listed companies of China: (1) alert "insider control" problem; (2) to improve producing and encouraging management staff systems and to reduce the company's majority shareholder controller extent; (3) the development and implementation the legal norms to protect the rights and interests of medium and small investors to promote the optimization of the ownership structure of listed companies; (4) to establish a good institutional environment which is good at optimizing ownership structure of listed companies.