Sme Board Listed Companies Ownership Concentration And Corporate Performance

Since the opening of the SME board in 2004, the rapid development of the SME board gathered a number of small and medium-sized companies. However, among these listed companies, ownership concentration is high, expropriation of minority shareholders by the largest shareholder is relatively common. Ownership structure is the basic of corporate governance, ownership structure analysis is also the start point to study corporate governance listed on the SME board. This paper reveals the ownership structure of listed companies on the SME board objectively, studies the relationship between ownership concentration and company efficiency, and hopes to provide reference for modifying the corporate governance mechanic of SMEs.Firstly, this paper studies the current situation of SME board ownership structure of listed companies, points out that there are significant differences between listed companies and SME board companies in ownership nature. Then, based on literature to date, this paper selects SME board in 2009 listed companies as basic data, regards the listed company's net assets as the dependent variable, the ratio of the largest shareholder as explanatory variables, and choose the Firm Characteristics as control variables, finally builds a quantile regression model, which are used to establish an empirical analysis of the relationship between ownership concentration and cooperate performance among listed companies of various value level which are classified into three holding modes:dispersed ownership, the relative and absolute control of Holdings. The results show that the relationship between listed companies concentration and corporate performance is positive, the intensity and significance varied among companies because of different firm features. Finally, based on the ownership endogenous frame, this paper has established a panel data simultaneous equation model which reveals that ownership concentration has a positive impact on corporate performance but firm performance has no obvious effect on ownership concentration.According to empirical results, the effect that ownership concentration has on firm performance is closely related to firm identity. Ownership concentration is not a criteria to judge a effective corporate governance, neither a means to achieve one. Therefore, the key to enhance the governance of listed companies in the SME board is to face the reality of higher ownership concentration, strengthen the control and supervision of major shareholders and gradually establish the mechanisms that minority shareholders can involve in corporate governance.