Study On The Relationship Between Ownership Structure And Corporate Performance Of China's Listed Companies

Ownership structure decides the allotment of the company ownership and right of control , also the composing of the board of directors, supervisor and management layer and the relation of them.It is the foundation of a company`s manage structure.The premise of improving performance is the reasonable ownership structure,analysis of their relationship has important meaning. The relationship between ownership and corporate performance has always been the hot topic,the scholars of home and abroad had done lots of researchs,but they don`t get a uniform conclusion because of different variables and others. Since the split share structure reform after the stock listed companies in China have become diversified, equity structure, there is different from the same unit price of shares of different weights with the problems have been resolved. In the split share structure reform implemented for many years later, ownership structure of China's listed companies and corporate performance, the relationship that exists between them is necessary to study this important issue.This retrospective analysis of the relevant theory and literature, summed up domestic and foreign scholars on this issue findings as toprincipal-agent theory, transaction cost theory, property rights theory, from theoretical analysis of equity structure and shareholding concentration and corporate performance of the The relationship between and obtained four assumptions. This selected according to certain standards of 222 sample firms, based on their 2007, 2008 and 2009 data as the research object,analyzes ownership structure and the relationship between corporate performance,validate assumptions are justified. In this paper, the net return on assets, earnings per share as being explanatory variable,the proportion of state-owned shares, legal person shares ratio,the proportion of tradable shares and shareholding ratio of the top five explanatory variables,to the natural logarithm of company's assets, asset-liability ratio and net profit growth for control variables,the establishment of regression analysis model,using Eviews software, descriptive statistical analysis and regression analysis.Through three years of data, descriptive statistical analysis found that in the stock composition, the average ratio of state-owned shares lower, and this proportion has decreased year by year trend, the proportion of corporate shares declined, while the proportion of outstanding shares increased considerably, and this Description split share structure reform changed the ownership structure of listed companies in China exist in the state-owned shares "due to the dominance" situation; in equity concentration, the stake in listed companies in China are concentrated, the first major shareholders, the average holding of about 38% of the proportion of , the top five shareholders, the average equity ratio of 49%.This regression analysis showed that: (1) in 2007 and 2008 the proportion of state-owned shares and corporate performance, there was significant between the positive correlation between the 2009 data showed a positive correlation exists between the relationship, but it did not pass significantly tests; (2) corporate shares and the company's performance, although there is a certain correlation between the relationship, but the test results have not passed a significant test, inconsistent with the hypothesis of this article. Main reasons for this result, this paper argues in part because in recent years by the financial crisis spread, the listed company performance be affected by test results which led to a certain bias, while the 2009 data is in the semi-annual forecast data obtained with a certain degree of bias. The examination of legal person shares and firm performance of a quadratic relationship between the found that in 2007, corporate shares and net assets yield rate curve between the significant relationship; (3) the outstanding shares and earnings per share between the significant negative correlation between the , and there is no net assets yield a significant negative correlation, which to some extent, validate the assumptions of the establishment; (4) equity between concentration and corporate performance there was a significant positive correlation to verify the assumptions in this paper 4. As China's largest listed companies, a high proportion of shareholding, it is prone to violation of major shareholders of the rights of other shareholders.For the empirical analysis of the results, this paper presents the following policy recommendations to improve the ownership structure: In the current circumstances, we should carefully deal with the problem state-owned shares of listed companies held by some state-owned shares will help to improve corporate performance; a corresponding increase in the proportion of corporate shares, optimize the ownership structure in order to improve corporate performance; China should regulate the introduction of a wide range of investment bodies to form a diversified stake in checks and balances mechanism, enhance the company's operating performance; to maintain an appropriate degree of equity concentration, appropriate to reduce the largest shareholder of stake, raising the second to the fifth-largest shareholder's ownership percentage, to form an effective check and balance mechanism; China should accelerate the training of a large number of outstanding managers, building managers market intermediary system and large-capacity human resources information base, promoting Manager rational allocation of resources, establish and improve a manager's incentive and restrictive mechanism and credit system.