The Relation Between The Changes Of Ownership Structure And Corporate Performance And Quality Of Disclosure

The ownership structure has close relations with corporate performance and quality of disclosure. The differences of ownership result in the differences of right check-and-balance system in corporate governance structure, the role that shareholders play in the governance structure, the motivation and way of the shareholders monitoring the accounting information that is disclosed by the manager, and the diversity of behavior on monitoring the equality of disclosure. The ownership structure has both positive and negative influence on corporate performance and quality of disclosure. The stock separation has constrained the perfection and improvement in corporate governance structure in many aspects. Before the share-merger reform, many Chinese listed companies are dominated by the biggest shareholders, and the quality of disclosure is worrying. After the share-merger reform, the dominance of the biggest shareholders has changed and whether the corporate performance and quality of disclosure have changed too? In this paper, we conduct an empirical study on Fujian listed companies from 2004 to 2008 to analyze the relation between the ownership structure and corporate performance and quality of disclosure. The finding is that share concentration has positive correlation with corporation and equality of disclosure. In the case of imperfect of external oversight mechanisms, the ownership structure decentralization maybe is not the best choice.