An Empirical Study On Ownership Structure And Corporate Performance Of Security Firms In China

The researchs about the relationship between ownership structure and performance are more on listed companies, but less on security firms. In this paper, the starting point is whether the company's ownership structure has significant effect on its performance, based on the research on domestic and international literature review, the article analyse the development of securities firms in China, discussed its major problem on ownership structure, such as excessive concentration of ownership structure, poor mobility equity, lack of balances between shareholders, unreasonable nature of shareholders. On the base of preceding theory review, the article make some relevant assumptions, and then use 90 securities firms by the end of 2008 as the sample, introduce the first largest shareholding ratio, the first three largest shareholding as well as the dummy variable:the nature of largest shareholder, and then establish a model, apply the relationship between China securities firms ownership structure and its performance with statistics software. The empirical results show that there is a certain correlation between ownership structure and its performance.Finally, based on the results, the article give some relevant policy recommendations to improve the equity structure of securities companies in China: encourage to spread the structure, strengthen the liquidity through the stock market, introduce private capital into the securities company to optimize the structure.