Research On The Relationship Between Ownership Structure And Corporate Performance Of The Telecommunication Equipment Manufacture Enterprise

The relationship between ownership structure and corporate performance has always being a hot topic drawing both domestic and international academic attention. This paper did an empirical study on the relationship between Chinese telecommunication equipment manufacturing enterprises’ownership structure and corporate performance, aiming to explore measures and methods to better optimize this type of enterprise ownership structure.During the research, this paper chose several independent variables, such as the share ratio of the largest shareholder, the second largest proportion to the tenth largest shareholders, the largest shareholder and the second largest shareholder equity balance, the sum of the square of shareholding ratio of the former top ten shareholders, the proportion of state-owned shares, the proportion of institutional investors, and other indicators of ownership structure as independent variables; and this paper use the asset scale and asset-liability ratio index for the control variables; furthermore, this paper select the annual reported of twenty-one telecommunications equipment manufacturers data from2006to2009in China as samples. And then, through the multiple regression analysis, this paper study how the variables impact on the comprehensive performance of the company. Conclusions are as follows: telecommunication equipment manufacturing enterprises of the proportion of the first largest shareholder, ownership concentration indicators and business performance turn out to have resulted in inverted "U" shaped relationship; the shareholding ratio of the second largest shareholder to the tenth largest and operating performance have an "U "shaped relationship; the proportion of state shares and corporate performance have a significant negative correlation; the proportion of institutional shareholding and corporate performance indicate a significant positive relationship. In addition, the control variable asset-liability debt rate and the corporate performance are negatively correlated; the company scale and the company performance are positively related.Finally, the paper puts forward five policy suggestions on the equity structure of the listed telecommunication equipment manufacturing enterprises:remain relatively concentrated ownership structure; develop and expand institutional investors; solve the agency problems by using equity incentives and option incentives. Strengthen the supervision from the securities market, and strengthen laws and regulations to protect the rights of the minority shareholders.