Ownership Concentration And Corporate Performance-based On The Empirical Study Of Listed Companies In Central China

The relevance between corporate ownership structure and operatingperformance has been a hot topic disscussed by the academic researchers，but theconclusions reached by researchers differed greatly,which were based on differentperspectives on this subject. In this paper, according to the normative analysis andempirical analysis, ultilizing the data of corporate ownership structure and financialindexes published by the listed companies of the central region in China, we tookadvantage of the listed companies of the central region in China as the researchedabjects to study the relevance between corporate ownership structure and operatingperformance.In the first place,This paper reviewed the related literature at home andabroad,and secondly based on the theory of property rights, it discussed how theownership concentration influenced the operating performance by internal andexternal governance mechanism, such as incentive mechanism, supervisionmechanism, the agency competition, mergers and acquisitions. Then mainly based onthe year from2009to2011and the218annual report data of listed companies incentral China, We selected the net assets yield as the dependent variable, the first bigshareholder’s shareholding, the top five shareholders’ shareholding, H5index andequity balance degree Z5as independent variables, company size and asset-liabilityratio as control variables and use the excel, stata11.0, SAS5.8for empirical analysis.Before the empirical analysis, we measured the indexes of ownership concentration:CR1, CR5, H5and equity balance degree Z5index for the descriptive statisticalanalysis, and then used panel data model to research the relationship between equityconcentration rate and operating performance. After that, we drew some conclusions:firstly, compared to the first big shareholders,the most prominent performance ofthe equity structure of listed companies in central regions of China is that theownership was highly concentrated by the top five shareholders, but it also showedthe overall downward trend.Secondly, In the process of the overall study of listed companies of the central region in China, we found that the proportion of the firstlargest shareholder of listed companies in central China, the top five shareholders’shareholding and held H5has a positive effect on the operating performance, and thereis no linear relationship between the equity balance degree Z5index performance andthe operating performance. Thirdly, according to the study of different controllingmodes, we found that the first big shareholder which was in the absolute holdingmode had the positive correlation relationship with the operating performance,and thefirst big shareholder which was in a relatively holding mode had a weak positivecorrelation with the operating performance,and the first big shareholder which was ina dispersed holding mode had a strong positive correlation with corporateperformance.Finally, conbined with the results of empirical research, we put forward somesuggestions in order to optimize the equity structure of listed companies in centralChina, improve the efficiency of corporate governance and company’s performance incentral China: firstly, strengthening ideas of the correct "Profits" and "Power "education for the largest shareholder of the company on a regular basis; secondly,introducing other investment institutions to participate in the corporate governance,and establishing moderate concentration of the checks and balances of equitystructure among several large shareholders; thirdly, strengthening the equityincentives between the company’s big shareholders and professional managers; lastbut not the least, perfecting the company laws and other relevant laws and regulations.