Ownership Structure And Operating Performance Of China's Listed Companies Correlation Study

Ownership structure is the interior structure of corporate owners, which determine the corporate governance. The efficiency of corporate governance is embodied by the corporate performance. This paper analyzes the correlation between ownership structure and corporate performance of Chinese listed companies qualitatively and quantitatively by means of statistics and econometrics methods.Several conclusions have been drawn. Firstly, there is no distinct relationship between the ownership structure and corporate performance when the performance is measured by return on equity and the operational cash flow per share. Secondly, the corporate performance measured by core return of asset ascend firstly and then descend with the increase of concentration ratio. Thirdly, compared to the inefficiency of state-owned shares and negotiable shares, the percentage of shares held by artificial persons is positively related with corporate performance.Based on these conclusions, we have some policy recommendations. Firstly, ownership concentration should be kept properly in Chinese listed companies and the shareholding percentage of large shareholders should be declined to achieve ownership control. Secondly, decrease the percentage of state-owned shares by means of selling them to artificial persons. Problem of the absence of the available state-owned shareholders should be solved as soon as possible.