The Empirical Analysis Of China’s Real Estate Listed Companies’ Ownership Structure And Corporation Performance

With the completion of the split share structure reform, China’s real estate listedcompanies have entered into a total current age. But as a result of the existence of manylisted sales conditions, part of the current rights have failed to be achieved. Thesechanges affect the behavior of the shareholders, the decision-making of the shareholdersand power configuration of the shareholders, thereby affecting the company’s financialdecision-making. In microcosmic view, studying of influence between the equitystructure and the company performance is beneficial to the optimization of the listedcompanies in China’s ownership structure and improves the performance level of thelisted companies in China. It is of great significance for the listed companies to improvethe market mechanism and regulate the behavior of shareholders. In macroscopic view,studying of influence between the equity structure and the company performance isbeneficial to judging the efficacy of the present stage of the split share structure reform,further optimizing the regulatory system and governance mechanisms of listedcompanies in China. It is of great practical significance for the formulation of thedevelopment of policies and regulations. It can be seen that study of the impact ofownership structure on company performance is of great significance both in theory andpractice.Ownership concentration and equity balance degree of performance of thecompany is not a simple one-way relationship. The relationship between ownershipstructure and corporation performance depends on the comparison of the expropriationeffects and benefits of synergies. Based on the theory of principal agent theory andcapital structure theory, the ownership structure is divided into concentration andbalance degree from the perspective of the quantity, thus analyzing the impact ofownership structure on company performance.Based on China’s split share structure reform, this paper is to analyze themechanism of the equity structure and the company performance about listed real estatecompanies. It selects listed real estate companies which have completed the split sharestructure reform up to the end of2010as a sample, divided it into two samples by theprincipal of whether it finished the split share structure reform and conducted empiricalanalysis. It applies econometric methods to study the relationship between them fromthese angles of equity balance and equity of concentration. First, summing up the effectsof two mechanisms, namely the interests of the occupation effect and benefits ofsynergies based on the above theories. Secondly, raise the hypothesis of the impactbetween ownership structure and company performance under the guidance of these two effects. Last, raise the conclusion after collecting data and building models the empiricalanalysis.Empirical results show that, the more reasonable the ownership concentration andequity balance are, the more powerful the corporation leaders are to oversee thecompany’s management, company will be able to have better performance and higherlevel of profitability which emphasizes that more reasonable ownership concentrationand equity balance have a positive impact on listed real estate companies and isbeneficial to the performance of raising the level of supervision and management formanagers.