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Listed Companies Ownership Structure And Business Performance Analysis

Posted on:2006-10-03Degree:MasterType:Thesis
Country:ChinaCandidate:Y B OuFull Text:PDF
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The truth that the state-owned listed companies have an inefficientcompany performance brings a lot of neglect effect to the innovation ofthe state-owned enterprises. The result that the state-owned listedcompanies who have got more capital is more inefficient than the privateenterprise shows there is something wrong of the Ownership structure. The ownership is the character of modern enterprises. It means theright to participate in enterprises' management, the right to get profit andthe right to be possessed of the last property. Ownership structure isusually defined the relationship of different shareholders because of theirowned different number of stocks. The reason why state-owned listed companies have bad performanceis because of their neglect of the importance of the ownership structure.Their inefficiency incentive systems result in their unreasonableownership structures. From the prospective of Modern enterprise theory,this article discusses the relationship between ownership structure andcompany performance, and the function mechanism of ownershipstructure, and explores the ways to improve company performance ofListed Companies. Chapter 1: Company performance will be the best if enterprises havea reasonable ownership structure. Modern enterprise theory discusseshow to improve company performance by the balance of the rights andincentive system for the separation of ownership and control. Theproblem comes from the conflict of different interest group. Ownershipstructure can maximize or decrease corporate value through a series ofinternal and external institutional arrangements to discipline and stimulatethe manager' behavior. Because different ownership structure gainsdifferent balance and incentive systems, the better the structure is, thebetter the company performance gets. Chapter 2: We collect different datum of different listed companies.The analysis of datum gives us some information such as: First,state-owned dominative company is the main portion of the listedcompany. Second, state-owned dominative companies have moreadvantages in industry. Chapter 3: This article distinguishes the Listed company in twostyles, such as state-owned dominative company and corporate-owneddominative company, to start our analysis. The conclusions are: First,ownership structure is more efficiency than capital structure; Second, themiddle-gathered ownership structure is the best style ownership structurepattern for enterprise' performance; Third, state-owned dominativecompany can not do any contributiveness to the enterprise' performance,the other way round, this style ownership structure usually hurtenterprise' performance. The fourthly, corporate-owned dominativecompany can not only be in favor of ownership structure functionmechanism, but also avoid the shortage of the state-owned ownership. Inconclusion, this middle-gathered style ownership is worthy advocating. Chapter 4: The result bases on the analysis of the relationshipbetween contract theory and the internal and external factors whichinfluence the enterprises performance. On the one hand, external factorsare stationary and its effect on enterprises performance should be by dintof the internal factors. So the internal factors are the most importantfactors which will decide the enterprises performance. On the other hand,corporate governance structure is the key to decide the internal factors. Itcan not only balance the relationship between the manager and the owner,but also resolve the problem of the right of profit. Ownership structure is the first factor in Corporate governancestructure. First, Creditors care more about the safety of their capital andinterest than about the business of enterprises, so they do not participatein enterprise's management usually. Second, Market structure is oftensteady in a long time and can not be changed by enterprises. Onconclusion, enterprises can only get good corporate governance bychanging their ownership structure. And because shares mean differentrights of enterprise, the shareholders pay more attention...
Keywords/Search Tags:ownership structure, state-owned share, corporate-owned share, private share, enterprise performance
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