The Study On The Relationship Between Equity Concentation、the Checks And Balances Of Equity And Company Performance Of Gem Listed Companies In China

In1932, Berle and Means firstly putted forward a proposition that ownership structure and corporate performance relationship in their classic "modern companies in the private property rights". They think, equity highly fragmented cannot guarantee the company’s performance to achieve optimal, namely equity is more dispersed, probably the company performance is worse. Since then, scholars in the world started many research on the relationship between ownership structure and corporate performance. But because all the scholars used different Angles of research or different research ways, the conclusions are different. This article is in reference on the basis of predecessors’research ideas, based on the investigation to the gem market in China, researching the relationship between the checks and balances of equity、equity concentration and company performance on the growth enterprise market in our countryin October23,2009the gem in the shenzhen stock exchange held the opening ceremony, marking the gem was formally established in our country. So far, the gem has been set up more than three years, it provides a smooth financing channels and good development space for our country’s small and medium-sized enterprises, so the gem market development rapidly, in a short span of time the number has reached more than350. But most of the gem companies are family before they listed companies, their equity structure compared to the general public company has its own unique personality, the relationship between ownership structure and corporate performance are different from those of general listed companies accordingly.This article uses410samples in the gem listed companies of our country from2010to2011as the research sample, firstly studying the status quo of the gem listed companies’ownership structure, ownership concentration and equity checks and balances of, at the same time the performance of the gem listed companies at present is analyzed, and then analysis the relationship between them. This article adopts the meth od of systematic, using analysis method select indicators influence corporate performance for factor analysis firstly, then to extract the main factor and then use the entropy weight method to calculate comprehensive index to measure the performance of companies, at last use it as a dependent variable and representative of the gem listed companies equity concentration and balance degree as independent variables for regression.then analyze the influence of equity structure to our country’s gem listed company’s corporate performance from regression analysis results. Finally based on the research conclusion put forward Suggestions for the improvement of performance.The empirical results show that:(1) the gem listed company performance existing polarization in China;(2) the control variables are significantly correlated with corporate performance;(3) the top five shareholders’shareholding proportion and top ten shareholders’proportion related to the gem listed company performance positively;(4) the degree of ownership balance has a significant positive correlation between corporate performance;(5)the gem listed company’s ownership structure in our country in three state, and has the higher equity checks and balances.On the basis of the empirical analysis conclusion, proposing the idea of upgrading our gem listed companies performance:perfecting our law system, guaranteeing the external big shareholders’ supervision to the controlling shareholder; Preserving the diversity of the shareholders’nature, to promote equity diversification; Maintaining proper ownership concentration and balance degree. Finally summarize the deficiency in view of this study.