Empirical Reseacrh On The Ownership Structure Impact Of Minority Shareholders’ Legal Protection

The ownership structure is the cornerstone of the corporate governance mechanism. Thedifference of ownership structure determines the differences of company organizationalstructure and differences in corporate governance mechanisms. And it also determines thebehavior and performance of the company. In addition, ownership structure gets largelyinfluence of the way of a national financial market regulation. It also gets influence of degreeof legal protection of investors. It is a control environment of the endogenous variables.Therefore, the research of relationship between the ownership structure and the legalprotection of investors is of great helpful for the understanding of the interaction of differentgovernance mechanisms. And it also helps us to find the appropriate corporate governancemechanisms, and then protects the interests of minority shareholders, improves the company’sgovernance, maximizes the value of the company. It’s more important that it also has somemacroeconomic significance: improve our system of corporate governance and capitalmarkets, optimize the ownership structure, provide policy advice, improve the legalprotection of minority shareholders, promote the protection of interests of minorityshareholders, rational allocation of social resources, and promote the healthy development ofthe capital market.In the theoretical analysis, first of all, it gives the summary and commendation to thedomestic and foreign literature of the relationship between the legal protection of investorsand ownership structure from both theoretical and empirical. Secondly, gets the smallshareholders and controlling shareholders through analysis of the checks and balances of theprincipal-agent theory and shareholders degree theory. The level of concentration of theshareholder structure of listed companies in China has a certain impact effect on theprotection of the interests of minority shareholders through analysis Contract theory and legaltheory. And the investor protection legislation restricts seize the benefits of a certainrelationship. Finally, establish the model of the relationship between them by theoreticalanalysis. In terms of empirical analysis, we research the legal protection of minorityshareholders assignment of the ownership structure through multiple regression analysis. Andsplit share structure reform events were differences in test. According to the degree ofinfluence we worked out the laws and regulations of the relevant policy recommendations forour country. Then let the interests of small shareholders get better protection. Throughempirical research we get that the better minority shareholders legal protection, the lower theconcentration, the lower the proportion of state-owned shares, the higher the proportion ofnon-state-owned shares. And the difference test of the split share structure reform supportsthis conclusion.This paper studies the innovation:1. It studies the legal protection of minority shareholders and the equity structurethrough the perspective of historical time series. Through empirical research we get that thebetter minority shareholders legal protection, the lower the concentration, the lower theproportion of state-owned shares, the higher the proportion of non-state-owned shares, moredecentralized the equity.2. In this paper, the split share reform of major events is as the history of the legal protection of minority shareholders. Study split share structure reform before and after andcharacteristics of the equity structure of listed companies. Before the reform, the ownershipstructure was due to the dominance and major shareholders of state-owned shares controlcharacteristics. It was equity characteristics tend to disperse after the reform. This furthervalidates the quality of legal protection of minority shareholders of the ownership structure.