Ownership Concentration, Outside Blockholders, And Operating Performance: Evidence From China's Listed Companies

Separation of ownership from the enterprise, the company produced the corresponding treatment in respect of principal-agent relationship, and this relationship needs related to incentive and restraint mechanisms to be able to play its effectiveness. The modern company to pursue the enterprise value maximization, it is necessary to improve corporate governance skills, corporate governance, ownership structure is the most important one, so in order to improve the performance of the company must find an appropriate ownership structure.As the special situation of China, most listed companies are state-owned properties, so the majority shareholder is the government or government representatives, this specificity allows us to developed countries with very different ownership structure of listed companies. But as China's capital market to further improve the separation between government and enterprises has become an inevitable trend, but also put into action to implement. In this period of economic restructuring, China's enterprises that want to improve company performance, and foreign companies under the mature market competition, we must find a more perfect model of corporate governance. Ownership structure is the foundation of corporate governance, the problem is transformed into finding an appropriate ownership structure. From 2005, China's share reform the start, the company will face new shareholders to join and governance changes in the environment, then what kind of ownership structure to the highest performance of the company, is the crux of the issue. In this paper, and equity ownership concentration to balance two aspects of the impact on company performance, so trying to find a reasonable structure to improve corporate governance, but also to give some suggestions to promote the further improvement of equity restructuring.The main content of this writing:The first part is the research background, explains the significance of this study. The author of the recent statement of ownership structure on firm performance reasons, the study also pointed out that equity ownership concentration and the importance of checks and balances on corporate performance.The second part is the literature review. I stated the domestic and foreign scholars have studied the results and their point of view, given the same time I Review. For ownership concentration on firm performance of foreign literature and the literature has four domestic point of view, but no uniform conclusions. The literature suggests that outside blockholders, the higher the share of checks and balances better corporate performance, while the domestic literature gives three different point of view, the reason is that China's economic system makes a lot of domestic listed companies are state-owned enterprises, unlike completely foreign company under market competition, and therefore differ.The third part of the theoretical basis of the equity structure of the foundation, and from equity ownership concentration and balance both company performance and discuss its impact, so in theory of ownership structure on corporate performance in rats. First, the principal-agent theory and the description of asymmetric information theory, and then on the equity ownership concentration and the definition and analysis of the theory of checks and balances.The fourth part of the design part, explain the sample selection, variable definition, while setting out in the fifth part in the research model to use, and the study set the assumptions.The fifth part is empirical research, this paper selected the China A shares 2006-2009 1194 sample observations and to panel data for the study. Bing come to have control over our major shareholder of the company's performance is more positive regulatory effects, rather than the occupation of the negative effects of the conclusion drawn in the same paper also the case of ownership concentration, stock checks and balances degree on the performance of the company is mainly a positive impact of the conclusions. Maintain a certain degree of ownership concentration, while building some equity checks and balances, can improve the efficiency of corporate governance and improve the company's performance.Part VI as part of empirical research findings, and propose the optimization of the listed companies in China. Ownership structure of property rights is the basis of corporate governance structure, ownership structure determines the composition of internal corporate governance mechanisms and operations. Therefore, the ownership structure of the optimization problem is the key issue of ownership structure. Listed companies in China for the previous ownership structure and performance of the empirical analysis, this chapter from the nature of equity and equity aspects of the concentration of the ownership structure of listed companies in the optimization are discussed.This attention to strengthening the study of quantitative analysis in order to avoid the interference of subjective factors, which is more clear, objective analysis of the main features of things. At the same time try to learn from past experience and research to overcome the shortcomings of previous studies. This article shareholders and managers of the principal-agent problem between the major shareholders and minority shareholders with the principal-agent problem between the link structure of share ownership concentration on the characteristics of the equity under the balance degree of the impact of company performance an empirical study and made a modest degree of ownership concentration of the shares under appropriate checks and balances, can effectively improve the performance of the company.The selection of the data, the paper chose the year 2006-2009, the cross-sectional data, large sample selection and empirical results excluding the impact of the finance and insurance, so the choice of the more stringent data accurate.