An Empirical Study Of List Companies On The Relation Of Power Balance And Corporate Performance

Since the reform of splitting share structure, the "dominance" penomenon in listed companies in China has been corrected in some degree.In this background,as more as possible to avoid the expropriation of minority shareholders of listed companies in China has become the mkost effective way to solve the gocemance problems. But it is very difficult to find a perfect ownership structure to balance concentrated ownership and dispersed ownership which can both absorb the strengths and avoid short comes,solve complex promble in corporate govermence. The present study is generally accepted that equity checks and balances has negative and positive influence on enterprise performance,and discuss those prombles in multi-angle and multi-level.But the studies did not explain the circumstances under which the equity structure is valid.This Paper argues that the value of stock structure of the enterrprise is not absolutely isolated.It should be placed among the business environment in whieh we can analyze the specific conditions of business life-cycle. On account of this point of view,the main line of this article is that in balanced ownership structure how did the corporate performance change with some vareables, different stages have different strategic choices,thereby increase business perormance of listed company.Firstly,the paper summarizes the research in the field of the correlation of the equity checks and balances and the corporate performance,and develpmence of enterprise life-cycle theory,and life-cycle classification.Based on principal-agent theory of corporate govemance and equtiy theory of checks and balances and characteristic of different stages in business life-circle,darw out that mature enterprises need to inprove monitoring utility by ownership structure arrangement,while recession enterprises need improve the decision-making utility by equity conocentration.In order to validate above analysis,this paper propose six hypothesis,divide enterprise in different life-cycles by the method of cash flow group,then use descriptive statistices,correlation analysis and multiple linear regression analysis test hypothesis.The empirical results show that:(1)In mature period enterprise, the second largest share holders share and busing performance show a significant positive correlation;the firth shareholder and second shareholder stake difference have negatively related with business performance.(2)In recession enterprise,the second largest shareholder equity percentage are negatively related with corporate performance;The share of the first largest and second shareholder have positive correlation relationship with corporate performance.Thus,we can draw a conclusion:In mature enterprise,the key point of corporate governance is the second subject of agency,the more we need is that shareholding structure has the effect of supervision and checks and balances;In recession enterprise,in order to maintain efficiently decision,check and balance ownership structure maybe is not a good choice,we should choose absolute holding equity structure,and can not blindly negative "dominant"...