Relationship Between Ownership Concentration、Equity Balance Degree And Corporate Performance

The open board ceremony of China’s GEM which named ‘Chinese Nasdaq’ washeld in Shenzhen on October23,2009, which makes a major step to the constructionof multi-level capital market in China. Today, the number of listed companies inGEM has been increased from28to294. And there are some problems in the GEMmarket booming, for example some corporate executives’ leaving, etc. It is theproblem of common concern that how to improve the performance of companieslisted on GEM and how to maintain the rapid development of the GEM. This paperexplore the relationship between ownership concentration、equity balance degree andcorporate performance from the point of view of the ownership structure of thecompanies listed on GEM.This thesis is divided into six parts: The first part describes the background andsignificance of research, research methods, structural arrangements and innovationof this paper and highlights the characteristics of the GEM listed company and itsownership structure. The second part describes the related concepts and theoreticalbasis on the ownership structure and corporate performance. The third partsummarizes the research of domestic and foreign scholars. The fourth part is theempirical research component. The study sample for this part is the2010annualreport data from the184companies listed on Shanghai and Shenzhen GEM whichare marketed before February2011. First establish a comprehensive evaluationsystem based on company performance by factor analysis. And then focus on theobjects of Ownership concentration and equity balance degree about ownershipstructure and draw the relationship between the Ownership concentration and equitybalance degree and corporate performance of GEM listed companies by Correlationand regression analysis. The fifth section presents the relevant measures to improvecorporate performance based on empirical findings. The sixth section summarizesthe research findings and points out the limitations of the study.