Research On Relationship Between Balance Mechanism Of Shareholding And Firm Performance In Listed Companies

As the improvement of capital markets in China and the establishment of modern enterprise system and the expansion of listed companies, the relationship of ownership structure and corporate performance is getting more important. As a long-term research project, study on ownership structure and corporate performance is constantly moving forward, the angle of its research and technology updates continuously improve the issue. If we can the corporate life cycle from the perspective of understanding the complex relationship between ownership structure and corporate performance, undoubtedly that it can provide a new way of thinking how to improve our equity structure of listed companies and then improve performance. Study on the life cycle theory in the field of financial well, we can clearly see from the many topics, if we put different stages of the life cycle of corporate in the same sample, is a departure from with the actual situation, this is useless to us closer to the essence of the object you want to study. This paper argues that the relationship between stock structure and form performance should be placed among the business environment in which we can analyze the specific conditions of business life cycle. Then we can select the appropriate ownership structure to improve the form performance. Hoping the study of this article can rich the research results of this area, thus promote healthy development of China’s capital market.The theory section of this article is based on principal-agent theory and Asymmetric Information, combined with Characteristics of enterprises in different stages of the life cycle, analyze the issues of corporate governance and management decision at different stages of development(Growth, Mature, Decline).On this basis, research balance mechanism of shareholding play a different role at different stages, because the difference of agency and management decision problems. Through empirical research, test the relationship between balance mechanism of shareholding and firm performance.Select sample of listed companies in China, using the method of financial comprehensive index to classify, to get three sample groups representing the stage of growth, mature and decline. Also consider industry factors, choose full government-monopoly industries, monopolistic competition and perfect competition-three samples of industry, eventually we received from the Shanghai and Shenzhen a-shares market the Chinese communists1260annual samples. And then used descriptive statistics, regression analysis, for each life-cycle stage to empirical test on the relationship between equity-restriction and firm’s performance. Through theoretical analysis and empirical study get the relationship between balance mechanism of shareholding and firm’s performance at different stages of the life cycle, to provide policy recommendations on optimizing equity structure for the enterprise, then improve corporate performance.