Research On The Relationship Between Ownership Structure And Corporate Performance Of Power Generation Industry

The ownership structure is a foundation of the corporate governance. Differentownership structure can lead to different structure of the company governance anddifferent behavior of the shareholder，followed by the different Performance of thecompany. The relationship between the ownership structure and corporate performance isa hot topic and a difficult problem focused by both the academia and empiricalresearchers. It has an important value to promote China’s state-owned enterprise reformand improve the corporate performance of the listed companies after understanding therelationship. Through reading the research literature we can know that the results ofempirical studies show a great difference，and even come to a completely oppositeconclusion. Improper ownership structure will have a negative impact on corporategovernance. Chinese securities market has not developed for a long time，there are someproblems for the ownership structure of the listed companies. The high proportion ofstate-owned share has brought to people’s attention and the discussion about state bigshareholder is always the focus of attention. Because of institutional reasons，in ourcountry there is a phenomenon that tradable shares and non-tradable shares both exist inthe listed companies. The proportion of non-tradable shares is so high that a large Part ofshares can’t be in circulation in the market. Additionally，as more and more privateenterprises come up in stock market. Private big shareholders who own a high proportionof shares appear continuously. In order to solve the problem of the ownership structure，our country carried on reform of non-tradable shares in2005which can make thenon-tradable shares into tradable shares and enhance liquidity of shares. Great changes inownership structure of listed companies have been token place. It is significant to studythe relationship between the ownership structure and company performance. Theownership structure of listed companies in one industry is different from the ownershipstructure of companies in other industry. Power generation industry plays an importantrole in the development of national economy. With the method of empirical study andnormative study, this paper takes the companies of power generation industry as objects,to reveal the relationship between the ownership structure and the company performance.