Research Of The Relationship Between Ownership Structure And Investors' Interest Protection

Since the establishment of China's securities market, it has made great development, but at the same time, listed companies have also revealed more and more problems, in recent years, the theory and practice circles gradually put focus on the issue of protection of investors' interests. Factors that affect the protection of investors' interests exist in many aspects, such as:related-party transactions, the management incentive, the company's dividend policy, transparency of information and so on. In this paper, we put the ownership structure as the starting point, discuss the impact ownership structure has put on the protection of investors' interest from two aspects-the degree of concentration of ownership and the constitution of ownership, we also give countermeasures and suggestions on how to improve the ownership structure and protect the interests of investors, with a view to provide a little information on how to better protect the interests of investors.First of all, this article reviewed and summarized the relevant theory about protection of investors' interests and literature about the relationship between ownership structure and protection of investors'interests both at home and abroad. On the basis of this, we further described the current situation of ownership structure as well as the protection of investors'interest in our country, then analysis the problems of China's ownership structure.Secondly, take an empirical research on the basis of theoretical analysis. Take all the Shanghai and Shenzhen A-share listed companies in 2006-2008 as the sample, on the basis of relevant assumptions, verify the relationship between the largest shareholder equity ratio, Herfindahl index, degree of ownership balances, the proportion of state-owned shares, the proportion of legal person shares, the proportion of non-restricted sale of A shares in circulation, the proportion of restricted sale of A share in circulation and the protection of the investors' interest. In the setting of related variables, we introduced company sizes, asset-liability ratio, and industry type as control variables.In the empirical part, first of all, make an initial descriptive statistics about all the variables and industry variables, and then, use the relevant analysis method to study the correlation between independent variables and dependent variable and the correlation between various independent variables. Make an initial inspection of the relationship between independent variables and dependent variable, as well as the rationality of the regression. Then, take Tobin's Q as an alternative and make a linear regression analysis, finally arrive at the conclusions:the largest shareholder equity ratio, Herfindahl index, the proportion of state-owned shares, the proportion of restricted sale of A shares in circulation are negatively related to the investors'interest protection. Degree of ownership balances, the proportion of legal person shares, the proportion of non-restricted sale of A shares in circulation are positively related to the protection of investors'interest.This paper argues that the phenomenon of" one dominating stock monopolizes" in state-owned shares, the imaginary of ownership, lack of effective balances among shareholders, the mechanisms of investors' interest has not yet truly been established as well as other issues still exist in the listed companies in China. As a result, the creditors and shareholders in the listed companies in our country can not monitor the operating of the companies effectively, and finally damaged the interest of shareholders who is the principal part of the securities market.