Ownership Structure And Firm Performance Research

The ownership structure is a foundation of the corporate governance, whether its installing condition is reasonable has a decisive effect for the efficiency of the corporate governance. Therefore when designing the corporate governance, we should set up a reasonable common ownership structure. In China, most if the listed companies stem from restructured state-owned enterprises. So, what on earth is the relationship between ownership structure of a listed company and its performance? How to improve the ownership structure of a listed company? In this paper, the Chinese electronic enterprises in Shanghai and Shenzhen Stock Exchanges in year 2004 and 2005 being used as sample, empirical researches on the relationship between ownership structure and a company's performance are done, the relations between the two are examined, and proposals on improving ownership structure are explored. The data of annual report that the listed companies announced are the main source of data that this paper carries on the empirical research.This paper first reviews on the foreign learners and the domestic learners' study results, and compares the international styles of ownership structure, then analyzes the influencing mechanism of the ownership concentration and structure on corporate governance, and further on the corporate performance, which is the theoretical foundation for this paper. Based on the general characteristic of structure ownership and corporate governance of Chinese listed companies, the hypothesis for this paper is proposed. Descriptive analysis and relevant counter researches on the variables of the sample are done, and the model equations are proposed. This paper uses the liner regression and One-way ANOVA as its technique to perform its empirical analysis.The empirical results show that: firm performance is significant "∩-style" related with the S1 index. The results indicate that neither the proportion of state owned shares nor the proportion of fictitious person shares have significant effects on the corporate performance. But the proportion of the circulating shares has a significant positive influence on the corporate performance.