Under Different Market Structure In Our Country Listed Company Ownership Concentration And Corporate Performance Correlation Studies

The relationship between equity ownership structure and corporate performance has always been a research hotspot in corporate governance. Reasonable equity ownership structure design has play an important role in maximizing the value of enterprises. According to the development difference in capital market, foreign scholars focus on the concentration ratio of shares, but demotic scholars always focus on the ownership property. With the development of domestic capital market, we should pay more attention to the concentration ratio of shares. Beside that the market structure will also have a great impact on each part of the corporate. So this paper expect to find the relationship between concentration ratio of shares and corporate performance from the market structure perspective.Based on theoretical and empirical research, we expect to get an overall picture of ownership concentration of listed companies in China, and to explore the law of ownership concentration and corporate performance, though that we can provide some corporate governance advices to the listed companies.According to the situation and development of listed company, and based on the theory of property right and the theory of principal-agent theory, the paper proposes five hypothesis. Details are as follows:Hypothesis1:Ownership of listed companies in China is relatively concentrated in the largest shareholder, and is highly concentrated in the top five shareholders, other shareholders have a smaller impact on the largest shareholder. Hypothesis2:Concentration ratio of shares in competitive industry is lower than that of the monopolistic competition industry. Hypothesis3:The relationship between concentration ratio of shares and corporate performance varies from different market structure. Hypothesis4:In competitive industry, there is no significant relationship between concentration ratio of shares and corporate performance. Hypothesis5:In monopolistic competition industries, the relationship between concentration ratio of shares and corporate performance is inverted U-shaped.For hypothesis1,1234listed companies are chosen as the sample for this study and the related data from2007to2009will be analyzed by descriptive statistical analysis. In hypothesis2-5, this article selects the textile industry as a representative of competitive industry, coal mining industry as representative of monopolistic competition industry, and statistically analyze will be used on related data of28listed textile companies and21coal-mining companies from2007-2009.The results show that the five assumptions which listed above are all valid. This article concluded that equity ownership structure of listed companies in China need to be optimized, and the market structure has important influence on relationship between concentration ratio of shares and corporate performance. So market structure factors should be fully considered when optimizing equity ownership structure and management structure for a company.According to this conclusion, this article put forward different suggestions to enterprises in different market structure environment:For enterprises in monopolistic competition industry, the urgent task is to build moderately concentrated ownership structure; the long-term task is to improve the market environment and promote fair competition since competition is the essential force to change equity ownership structure. For enterprises in competition industry, the mechanism of the corporate governance should be optimized to make shareholders, directors, supervisors and managers do their own work well, which can increase the enterprise efficiency further.