Analysis On Corporate Performance After The Change Of Largest Shareholder

Non-tradable shares reform completely solved the system defects of the same share with different weights and with different valence since China’s securities market was born, that has an important significance to improve the governance of listed companies. Several years after the consummation of Non-tradable shares reform, the transfer of listed companies control right appears frequently. Many controlling shareholder of companies changes every year. The change of the first shareholder is an important part of the transfer of listed companies. Link the changes of the first shareholder with corporate performance has an important practical significance. This not only reflects the effect of the company solve the problem of internal agency problem through external governance mechanism, but also reflects the operating efficiency of control right market and capital market. Because of our special historical background and the characteristics of ownership structure, the research on theory circle starts late. A large number of research focus on the effect of the change of the first shareholder, but the study on its influence factors is difficult to find, and there is no consensus in the conclusion.In this paper, the object of study is127listed companies which the first shareholder changed between the year2006and2008and we will study the influence from the aspect of change mode, ownership concentration, the structure of board of directors and behavior characteristics. Besides, we will track the performance of these companies two years after the transfer, and find the main factor which affected the performance of these companies.There are5chapters in this paper. This paper shows the research background, research thinking and method, the research framework and significance, and raises the innovation. In chapter2, this paper reviews and analyzes the related research on the change of the first shareholder and corporate performance which will lay the foundation for the study. In chapter3, this paper designs the empirical research and makes research assumptions. Finally, this article gives a preliminary processing of chosen sample. In chapter4, this paper analyses the corporate performance after the change of the first shareholder and influencing factors with demonstration through descriptive statistics and regression analysis. Finally, this article gives a realistic explain to the empirical results. In chapter5, this paper draws conclusions and. makes some specific recommendations combined with China’s actual situation. In the end of this chapter, this article points out the deficiencies of this study.The results show as follows, firstly, corporate transferred compensatory perform better than that transferred free. Secondly, adding up the stake of the first shareholder is help to improve company’s performance. Thirdly, adding up the stake of the senior management benefits the future development of company. Fourthly, if the first shareholder changed, companies that the chairman changed perform better. Fifthly, adding up the number of dependent directors doesn’t have obvious relationship with company’s performance. Adjusting the main business benefits the company’s short-term performance.Based on previous research, this paper carries on the innovation as follows. The first point is innovation on index. When designed variables, this paper adds the indicators of stake change of senior management and make an empirical analysis. The results show that adding up the stake of the first shareholder has a positive impact on company’s performance and improves the company’s performance. The second point is innovation on conclusion. The study on collected sample shoes that factors such as change mode and the chairman change lag when company’s equity changes. On the other hand, the change of main business has a short-term affect on the company’s performance.