Equity Structure Of Listed Companies On Corporate Performance

The rationalization of Equity ownership structure draws the attention of people. Equity ownership structure is the core of corporate governance and can affect the performance through entrust-agency mechanism, incentives and supervision mechanism. The appropriate structure is conducive to the management to strengthen and improves the company's performance. The unsuitable structure will lead that shareholders misappropriate company economic interests, make the minority to hitchhike and reduce corporate performance.After the capital market was established in 1990, the relationship between ownership structure and firm performance is the emphasis, which has caught theorists and substantive industry wide concern. But because of the different research methods, numerous search fruits didn't form consistent conclusion. Disparate Equity ownership structure will influence firm performance. Manufacturing industry in our country is important. So this paper chooses manufacturing industry as a study of the objects.Around the subject that the relationship between ownership structure and firm performance, This paper examines companies in Manufacturing industry on the Shanghai Stock Exchange and Shenzhen Stock Exchange from 2008 to 2010.This article analyses the effect between company's equity properties, equity concentration and company performance, and then makes appropriate recommendations.Centered on research content, the full paper is mainly divided into fire parts. Chapter one, which is the part of introduction, explains the research background and the purpose that Choosing manufacturing enterprise as the research object significance, reviews literature review and proposes the train of thought. Chapter two introduces the related concepts and the theory about the influence of equity structure and firm performance based on entrust-agency mechanism, incentives and supervision mechanism. Chapter three introduces basic condition of equity ownership structure of manufacturing industry in our country and abroad. Chapter four is research on ownership concentration of manufacturing industry. Chapter five is some valuable advice to optimize equity structure.The results show that the proportion of state ownership holds negatively correlate with corporate performance, and the proportions of corporation ownership, internal employee shareholders and equity balance positively correlate with corporate performance. Share concentration holds the positive "U" type with corporate performance.Concrete proposals are put forward for the improvement on the base of date analysis. (1) Reducing the proportions of the state share (2)Increasing the proportions of corporate shares (3) Formulating an incentive plan for senior management and the employee including plans of stock option (4) Restraining controlling shareholders' power (5) Enacting laws and regulations to protect the minority shareholder.