An Empirical Study About Ownership Structure And Firm Performance

The relationship between the ownership structure of listed companies and company performance has been a topic of academic discussion, but the unsatisfactory performance of listed companies has been an obstacle to the healthy development of China's securities market. Many reasons induce the companies'inefficient performance, but the equity structure is irrational, (owner of the main weak and internal control, etc.) led to the low efficiency of corporate governance is an important reason. Therefore, the study ownership structure and the relationship between the performance of the company to seek a reasonable share structure, and for the resolution of China's state-owned enterprise reform-tradable shares has important reference value. In recent years, scholars and managers of companies in the ownership structure and corporate performance related areas of research has been made in a considerable number of research results, this paper, based on the basis of previous studies, select the Zhejiang Private and state-owned listed companies, total 62 listed companies for three consecutive years 2006,2007,2008 a total of 186 observations of data samples to analyze the ownership structure of the company's performance. Empirical results found that:(1) The nature and the largest shareholder of company performance. This article will first largest shareholder is classified as state-owned shares, legal person shares in general, natural stocks and foreign legal person shares. Analysis of variance showed that the largest shareholder of the general nature of legal person shares of company performance was significantly higher than the largest shareholder is state-owned shares of the company's performance; but also higher than the first largest shareholder of the company's stock performance is a natural person. However, the largest shareholder of listed companies for foreign stock performance and the other three types of companies there was no significant difference between the results. (2) The shareholding ratio of the different nature of the company's performance. Regression results show that the proportion of non-state-owned shares and corporate performance exists between the inverted U-shaped curve relationship between the proportion of the negative effects of state-owned shares in the company performance, the outstanding shares of dividends and is also a negative correlation between corporate performance.(3) on Ownership Concentration and Corporate Performance. Panel data regression analysis showed that the proportion of the largest shareholding and corporate performance exists between the U-curve relationship, the second to the tenth largest and the shareholding ratio between the company's performance, there was a significant positive correlation between the stock checks and balances degrees also exist between the company's performance, a significant negative correlation.(4) consider the factors of listed companies, industry competition, the ownership structure on corporate performance in the role of the competitive environment depending on the industry vary. Complete government monopoly in the industry, the state-owned stock holding ratio and corporate performance are related to the proportion of the largest shareholding and corporate performance also showed a significant positive correlation; while in a competitive industry, the state-owned shares and corporate performance, a significant negative correlation, the first major shareholders equity ratio and firm performance relationship was U-shaped curve.