| The pattern and performance of corporate governance are influenced by ownership structure to a great extent, and ownership structure is dictated by the degree of investor protection in a country, a variable decided by supervision setting. On the logic basis, this paper tries to explain governance problem related to ownership from the perspective of investor protection.This paper summarizes mechanism by which law and institution affect ownership governance: small shareholders incline to free-riding, while large shareholders have motility to monitor managers and motives to expropriate small shareholders. The expropriation influences the choice of financing pattern, leads to high concentration of ownership, impairs rights and interests of small shareholders and affects the efficiency of corporate governance, thus dwindles the value of corporation.The most distinct traits of ownership structure of listed firms in China are complexity, liquidity and concentricity, which result in large shareholders' abuse of ownership. This paper adopts regression analysis to study the correlation between ownership structure and corporate performance, and use a listed firm, ST HouWang as case to argue that the influences on corporate performance by equity structure of listed firms in our country are not completely consistent with what's expected by traditional theory, but depend on present status of corporate governance in our country to some extent.At last this paper discusses how to improve equity structure of listed firms in our country from three points: settling country and corporation equity circulation, increasing the proportion of corporation equity and cultivating institutional investors. According to articles pertaining to investor protection in Corporation law, Securities law and governance rules of listed firm, this paper brings forward some suggestions on improvement and an idea of setting up special organization to protect rights and interests of investors to perfect the judicial system. |
PDF Full Text Request