Ownership Structure And Company Performance: Empirical Evidence From Private Listed Companies In China

With the steady development of China's capital market, the number of private listed companies is increasing. These companies have the outstanding growth ability and profitability, and have become the new force of promoting economic development. Because of these, they caused the attention of the academic circles. As we focus on the outstanding performance of these companies, we should pay attention to their problems at the same time. Ownership structure is one of the most important problems of private listed companies. Making ownership structure more reasonable is an influential factor of developing private listed companies.The research object of this paper is the ownership structure of companies which listed in our Capital market. Through learning the researches of related aspect, then I find the elite and defective parts of these researches, and point the direction of this paper. Through quoting the related theory and concept, then I lay the foundation of the following empirical analysis.The empirical analysis is the core of this paper. In this paper, the ownership structure is defined as ownership concentration and equity property. Ownership concentration is the quantity of ownership structure, and equity property is the quality of ownership structure. At the same time, the company performance is defined as operational efficiency and market efficiency. First of all, I expound the method of selecting samples and define the dependent variables and the independent variables. The samples are 258 private listed companies which meet the conditions. This paper uses the first largest shareholder as the index of ownership concentration, and uses the proportion of outstanding shares as the index of equity properties. Due to there are many indexes of measuring the operational efficiency and market efficiency, this paper uses factor analysis to extract common factor from selected indexes, and then set up the operational efficiency comprehensive index and the market efficiency comprehensive index. These comprehensive indexes can measure operational efficiency and market efficiency comprehensively. This paper chooses earnings per share, every net assets per share, business revenue and net interest rate, total assets of the net assets yield, asset returns as indexes of measuring the operational efficiency, and chooses PE ratio, PB ratio,PS ratio, Tobin's Q, book marketing value ratio, market value as indexes of measuring the market efficiency, uses factor analysis to extract common factor from selected indexes, and then set up the operational efficiency comprehensive index and the market efficiency comprehensive index. Secondly, this paper processes the selected data with descriptive statistics, analyses the mean and standard deviation of data and shows the distributions of the first largest shareholder and the proportion of outstanding shares. The analysis shows that proportion of the first largest shareholder is low, and the proportion of outstanding shares of the most of private listed companies are more than 70%.Thirdly,this paper uses correlation analysis to find the correlation ship between dependent variables and independent variables, The analysis shows that the correlationship between the operational efficiency and the first largest shareholder and the correlationship between the operational efficiency and the proportion of outstanding shares are significant. In order to explore the further relationship between dependent variables and independent variables, this paper choose total assets of natural logarithm, total assets turnover, net profit growth, profession attribute as control variables, and then establish multivariate regression models. At last, through the above analysis, this paper concludes the results. We should use operational efficiency to measure the company performance. The positive correlation exists between the operational efficiency and the first largest shareholder, Ownership concentration can influence the performance of the companies, although the effect is not significant, but it is not a negligible factor.The negative correlation exists between the operational efficiency and the proportion of outstanding shares, the excessive number of retail investors is disadvantage to the improvement of company performance.The main contributions of this paper are choosing private listed company as the research object, measuring ownership structure from two aspects which are ownership concentration and the proportion of outstanding shares, measuring company performance from two aspects which are operational efficiency and market efficiency, and use the factor analysis method to set up the operational efficiency comprehensive index and the market efficiency comprehensive index. Due to the research ability of author is not good enough, this paper still have many defects, need to further explore and improve.