Research On Checks And Balances Impact On Listed Company's Corporate Value In Medicine Industry

Shareholding structure is an important component of the corporate governance, which creates impact on the company by certain mechanism in turn affects firm value. Shareholding structure is reasonable or not directly related to whether the company can effectively improve the efficiency of corporate governance, finally enhance the company value. In the research of the relationship between ownership structure and performance of listed companies, how dose the rational disposition of stock rights structure improve the performance of the company has been the main study direction both at home and abroad for a long time. When put forward the second class delegate-agency theory, balanced shareholding structure become the key point. However, because of the difference of research ranges and research approaches, there's no final conclusion to this question until today. At present,the conclusions can be roughly divided into three categories:Firstly, the balanced shareholding has a positive impact on the corporate value; secondly, the balanced shareholding has a negative impact on the corporate value; thirdly, there is no significant linear relationship between the balanced shareholding and the corporate value.Based on the review on the basis of predecessors' research conclusion, choose the pharmaceutical manufacturing companies as the research object. An improved Game Management mold was created, Checking and Balance of pharmaceutical manufacturing industry in the governance structure of listed company shares flexibility in the Game was explored; the impacts of the equity ownership concentration and the degree of checks and balances was analyzed by the panel data of the revolution of the tradable shares between 2007 and 2009; post non-tradable share reform era construct reasonable shares structure to improve the health development of the pharmaceutical manufacturing industry was discussed. And the results show that:(1)The state owned shares and legal person shares of the pharmaceutical manufacturing industry are gradually withdrawn from the market, flowing into circulation area. The public shares proportion is gradually increased, the shares are basically on circulation. Reform of non-tradable shares was paying off.(2)Pharmaceutical manufacturing companies with corporate performance and the share concentration ratio in quadratic curves pour u-shaped relation; equity of moderate concentration is benefit in improving the performance. Visible, the first big shareholders of company governance role is not blindly negative correlation, but it needs to optimize its regulation in the market duds. The fundamental way to solve the big shareholder infringe upon the interests of small shareholders is to consummate the market mechanism and perfect the legal system.(3)The gap of the top five shareholders and corporate performance also presents the conic relationship. According to the bargaining model, big shareholder equity percentage gap shrinks may reduce the decision's efficiency because the efficiency of the agency costs bring growth and thus affect the company improved performance.(4)The correlation between degree of ownership balance and performance of the company is not significant which means that the balanced shareholding structure cannot play its anticipated supervisory effect on Chinese listed companies of medicine manufacture industry. In China, the influence of ownership restriction on corporate performance is not obvious because of the imperfect external governance mechanism and the imperfection of several major shareholders. So the development of ownershipestriction should be explored.(5)Based on the analysis of the above, and puts forward the listed company to promote medical manufacturing industry sustainable development of countermeasures: Gradual optimization "a single big shareholding", Moderately centralized equity, Innovation ownership restriction mechanism. Consummate external management environment.