An Empirical Analysis Of Equity Structure And Corporate Performance In China’s Manufacturing Industry

The emergence of the modern shareholding company meet the requirements of the enterprise scale, social and professional, but as the separation of ownership and management, leading to the agency, internal control, large shareholders occupation interests of minority shareholders and other issues. Equity ownership structure is the base of corporate governance, deciding the scope authority, enthusiasm of shareholder governance, rational ownership structure can help to improve the efficiency of corporate governance, corporate governance and ultimately enhance the performance of the company.Since reform and opening, China’s shareholding company’s transformation has made great progress, but with the continuous development, the listed company equity ownership structure exposed many issues,as the ownership structure is too concentrated, large shareholders encroach the interest of small shareholders and so on. As existing these problems, China’s corporate governance structure is difficult to standardize, the efficiency of corporate governance is difficult to improve, and so is corporate performance, In this case, combining with the China’s national conditions, we research the relesionship between the ownership structure and corporate performance, that is significance to improve equity firms, corporate governance and the company’s performance.In this paper, on the basis of existing research, we select the manufacturing listed companies as the research samples, respectively, researching the relationship between the ownership structure and corporate performance from the nature of equity, ownership concentration and equity balance degree three aspects, in order to propose some optimize policy recommendations. Full text can be divided into six parts:First part is introduction, introduced the research background and significance, and research approach, main content and structure are also included.The second part is the literature review, collating and reviewing the existing research about the foundation between ownership structure and corporate governance, and analysis the reasons of different conclusion. The third part is concept identification. Firstly defining the relevant concepts, secondly describing the theories, At last analysis the relationship between equity structure and corporate performance and provide support for empirical research.The fourth part is the research design. Accrrding to the research analysis, we need to do the empirical tests to learn more about the relationship。 this part is the preparation about the empirica tests, included defining the proxy variables and the empirical model.The fifth part do the empirical tests and carry out the testing results, using SPSS19.0to investigate the relationship between ownership and firm performance in manufacturing industry.The last part is conclusions and suggestions, offering some relebant suggestions accourding to the research analysis and the research results,The sample is based on manufacturing listed companies in Shanghai and Shenzhen Stock Exchange from2009to2011.We found that:In terms of shareholder’s nature, the percentage of state shares and corporate performance presents a kind of negative related; The percentage of institutional shares and corporate performance is positive related.In terms of concentration of ownership structure, the negative relationship exist when the concentration of ownership structure is represented by the first majority shareholder, the five most shareholders and the ten most shareholders.In terms of equity balance degree, the positive exist when the equity balance degree is represented by the second-largest to the fifth largest shareholding ratio the largest shareholder and the second-largest to the tenth largest shareholding ratio the largest shareholder.Combine the research, proposing the following proposals:(1) Appropriate reduction of state-owned shares.(2) Reduce the stake of corporate shares.(3)Remain holding position of major shareholders and reduce ownership concentration.(4) Strength the function of equity balance.(5) improve the corporate governance environment.