A Study On The Relation Between The First Shareholder, The Source Of Senior Management And Corporate Performance Of The Listed Company Of Pharmaceutical And Biological Products Industry

In China, the listed company's equity is more concentrated, generally the largest shareholders hold relatively high proportion of the stock. Research indicates that the largest shareholders hold the listed company's actual control in China.Although there is extensive research on the relationship between the largest shareholder and corporate performance, we know that the factor which play a fundamental role in the creation of the corporate value is "person", there is little literature focus on the individual in the corporate governance structure to analyze whether is a relevant link between the largest shareholders and corporate performance. Under the condition that the china's stock market and the manager market are still far from perfect, the largest shareholders play an important impact on the corporate governance structure, they usually appoint directors or executives to hold the control of the listed companies.However, in the corporate governance structure, the board of directoro(?)board of supervisors and other senior management personnel play a different role in different aspect of corporate governance, so in this article, we concentrate on these three aspects to explore whether the link between the board of directoro(?)board of supervisors o(?)other senior management personnel and the largest shareholders affect the corporate performance or not.The paper mainly based on the agency theory, and the paper choose the pharmaceutical and biological products industry which is under manufacturing industry as the sample, and selected financial data in the year of2010of the sample. In the basis of the review on the relationship between largest shareholders'control, corporate governance and corporate performance, the paper starts from the impact the largest shareholders play on the corporate governance, to study whether the impact significantly influence the corporate performance.First of all, focus on the special circumstances of concentrated ownership of listed companies in China, the paper classify the sample according to the percentage of the stock holding by the largest shareholders, to investigate the concentration of ownership status of the selected samples;Secondly, in accordance with the standard set by the article to judge whether the members of board of director,the members of board of supervisors and other senior management personnel is in the interest of the largest shareholders or not, and choose the proportion of members who represent the interests of the largest shareholders as a variable, then use three models to study whether the structure of board of supervisors, board of director and other senior management personnel impact the corporate performance.Finally, the paper would analyze the results of the regression and make recommendations according to the results which aim at improving the governance structure of listed companies.The paper makes the following conclusions through the empirical study:(1) the proportion of members of board members representing the interests of the largest shareholder has a significant positive impact on corporate performance.(2) the proportion of members of supervisory board members directly represent the largest shareholder of the interests of the largest shareholders has no significant effect on the company's performance (3) in the other senior management personnel, the higher the proportion of management personnel who represent the interests of the largest shareholder, the better the company's performance, that shows a significantly positive correlation.From a fresh perspective, the paper starts from a personal point of view in the corporate governance structure to study the relationship between the largest shareholders and the performance of listed companies. It theoretically studied the extent of the impact the largest shareholders play on the corporate governance structure, and analyzed the relevance between the impact and corporate performance in the perspective of agency theory, it makes contribution to enrich the corporate governance theory, and it provides some practical significance to the listed companies.