Analysis Of Correlation Between Ownership Structure And Firm Performance For Manufacturing In China

The ownership structure is the core issue in the corporate governance structure. Theresearch on the relationship between ownership structure and corporate performance hasbeen not stopped. How to find the optimal ownership structure is also a hot topic betweentheoretical circles and practice. In theory, ownership structure formation of the twoopposing effects on firm performance and impact on firm performance from a differentperspective through incentives and oversight mechanisms. From the existing empiricalresults, the relationship between ownership structure and corporate performance has nounified conclusion at home and abroad.In this article, selected manufacturing listed companies as the study sample on thebasis of the existing research. Ownership structure is chosen as the explanatory variables,the corporate performance of listed companies is chosen as explanatory variables, at thesame time, and the company size and ownership proportion of manager is chosen as acontrol variable and creates a multiple linear regression model. Which conduct empiricalanalysis of the relationship between ownership structure and company performance inChina’s listed manufacturing companies to seek optimal ownership structure to achieve themaximize corporate performance. The results show that:(1) there is a significant positiveccorrelation between ownership concentration and corporate performance of listedcompanies (2) there is a significant positive correlation between the equity checks andbalances and corporate performance of listed companies.（3）there is not a significantpositive ccorrelation between proportion of outstanding shares and company performanceBased on the above conclusions, the article has brought forward proposal to optimizethe equity structure of listed manufacturing companies in China. A listed manufacturingcompany of our country needs to avoid one share to the full alone big,but must keepcertain stock right all together degree，play a role in checks and balances on corporategovernance in order to achieve effective supervision and control of the company, byIncreasing the number of large shareholders, to further improve the performance of thecompany. Finally, the article emphasize that Ownership structure should be optimized onthe basis of a fully competitive market environment, and must be integrated closely with the interests protection mechanism of investors...