Study On The Relationship Between Ownership Concentration And Enterprise Competitiveness

As a core issue in governing structural of the listed company, the ownership concentration has always been an important direction in the research in company’s management. Whether a company is equipped with a rational ownership concentration has a decisive effect to the efficiency of governing structural and great impact on the performance of a company. Enterprise performance is an important part of enterprise competitiveness, enterprise competitiveness is mainly embodied on the financial indicators, the ownership concentration and competitiveness of enterprises relationship first of all, literature on the relationship between the ownership concentration and corporate performance to comb and references. Scholars at home and abroad related research literature on ownership concentration and corporate performance a lot, but there is no unified conclusion, the research on relationship between ownership concentration and corporate competitiveness are of certain reference to challenge.Ever since1990, when China’s first stock exchange was established, the national securities market and listed companies have witnessed a full growth. Along with the future market economy, the future of listed companies will have larger development space. However, contributed to the fact that a large member of China’s listed companies are originated from state-owned enterprises, the phenomena of stock equity division and a single share that takes up the decisive proportion are exclusive in China’s listed companies. Coupled with the laws and regulations of the securities market in our country is not perfect, many problems exist in the aspect of equity structure of listed companies. As the launch the reform of stock equity division in2005, China has witnessed an upsurge of lifting the ban of non-tradable shares during2006to2007. Such a situation has a great impact on the structure of China’s securities market and the stock equity of companies. Therefore, it is highly important for us to study the relationship between the stock equity structure of listed companies and the performance of companies. The article is based on a five year’s data from2006to2010of40domestic pharmaceutical companies listed in Shanghai and Shenzhen stock markets, to analyze the procreative impacts on the competitiveness of those companies owning to different degree of concentration in stock equity. At the same time, the article also puts forward the enterprise competitiveness evaluation system, with the comprehensive measure of enterprise competitiveness evaluation indicators, for future research also provides a new perspective.First of all, the article makes a brief introduction of the research background and its significance, expounds and defines some basic conceptions like stock equity structure and performance, for example. Also introduced in this paper, the related study research methods and the basic framework of the article, the article introduce one by one the main content of each chapter, the article to illustrate the difficulties and innovations.Secondly, dissertation literature review is the article research the theoretical basis. The concept of enterprise competitiveness, index selection, evaluation method and evaluation system are summarized and summed up. At the same time, introduces the relevant theories of enterprise competitiveness, research done theory foreshadowing for posts. On the basis of theoretical analysis, this article to our country medical listed company of ownership concentration and corporate competitiveness present situation and the existing problems are described and analyzed, and the realistic condition for later empirical analysis.Again, on the basis of the combination of theory and reality, in this paper, the pharmaceutical listed companies in China equity concentration and conducted a series of empirical analysis of enterprise’s competitive power. The empirical results show that:(1)The proportion of the first largest shareholder is negatively related with medicine enterprise competitiveness of listed companies.(2)Top five stockholders are positively correlated with the medicine enterprise competitiveness of listed companies.(3)The top five stockholders’shareholding sum of squares are positively correlated with the medicine enterprise competitiveness of listed companies.(4)Z indices have less to do with the performance.Last but not the least, this article combines the existed theoretical and empirical analysis with the specific characters of the pharmaceutical industry, and recommend five points to optimize the ownership concentration level of the listed medicine companies and enhance their competitiveness:(1)Appropriate increase effective transformation of pharmaceutical listed companies of stated-owned shares and legal person share.(2)To optimize the equity structure.(3)To vigorously introduce institutional investor.(4)Appropriate increase management shareholding.(5)To enhance the exterior supervisory strength.This article emphases the research of the relation of stock equity concentration and enterprise competitiveness and puts forward suggestive conclusion and policy advices. The major attributes of this article lies in the following aspects:First, the author thinks that the competitiveness of enterprises to research is still in the stage of more chaos, the concepts of enterprise competitiveness and measures have not unified conclusion so far. Second, the writer thinks that the attributive definition for the listed national stock equity companies is ambiguous, therefore, this article has tried to avoid the data collected according to the attributive classification of stock equity. Rather, it analyzes the impact of concentration level in stock equity on competitiveness by applying mainly the indices in the field of stock equity concentration. Third, in order to eliminate the impacts of time and business attributes, this article utilizes the data from the past five years in the field of pharmaceutical listed companies as its target. Fourth, for the sake of the dynamic test of the relationship between ownership concentration and corporate competitiveness, this paper adopts the linear regression analysis and nonlinear regression analysis comparison method, which makes the results more accurate and closer to reality.