An Industrial Contrastive Research On The Relationship Between Ownership Concentration And Corporation Performance Of Chinese Listed Companies

Shareholders concentration, a very important component of the corporate governance, determines the residual control rights and residual claims. Shareholders receive dividends is a residual income, while managers can exercise control over. Therefore, there is need to monitor corporate governance structure and control, to maximize the creation and sharing of revenues, reduce agency costs, and expand individual residual control and residual claims. In order to make such a contractual relationship for the real corporate governance structure able to lead managers to act in accordance with the principle of maximizing shareholder value, shareholders concentration to some extent is very important to guide the behavior of managers. Thus, shareholders concentration will have a direct or indirect impact on corporate performance. The academic research on the relationship between shareholders concentration and corporate performance has been a heated topic for decades, but there is no unified conclusion. Numerous different conclusions is not good for policy makers, designers ownership structure, investors. Based on this study, the industries will play a great impact on empirical results and maybe a possible explanation to the different empirical conclusions on this field. In the literature review, ownership concentration and equity checks and balances were combined with the theory of separation of ownership and the theory of principal-agent hypothesis. Different method of Performance evaluation has been analyzed and discussed, including the advantages and disadvantages. In this paper, the company selected performance indicators for the ROA, ROE, and comprehensive financial indicators. This paper has collected a total of853companies in Shanghai and Shenzhen stock markets from2008to2010years of panel data, deleting samples with incomplete financial data. Finally, we get a total number of508samples for10industries and2008to2010years. For data processing, excluding abnormal data analysis and data normalization calculation has been done. For consolidated financial indicators, using principal component analysis method to calculate the integrated value. According to the industry classification, all the samples has been divided into10sectors and sub-industry sample of descriptive statistics in detail, preliminary findings of the gap between different industries, the initial ownership structure confirmed the characteristics of different industries there are significant differences. In order to select most characteristic industries, use SPSS to do difference expectation to find4industries. In determining this, regression analysis based on the control variables, respectively, for different industries, different performance indicators under the different dimensions of ownership concentration and conclusions of the sort have been dong in the sixth chapter. Eventually, this paper found that indicators reprensenting industry ownership concentration and corporate performances is a great impact. Moreover, the different results of different industries prove that industry is a very important impact on the relationship of shareholders concentration and corporation value. The contrastive analysis based on industries tends to support the company’s contingency theory which means that there is no best shareholders concentration. Companies will adjust its shareholders concentration to achieve best corporation performance.