The Largest Shareholder In Chinese Listed Companies To Influence The Corporate Performance Empirical Study

On29April2005approved by the State Council, China Securities Regulatory Commission issued" on the share-trading reform of listed companies is pilot the announcement of concerned problem", marking China’s listed company equity divides buy to reform pilot job is started formally, mainly to solve the non-tradable shares transfer, reduction and listed circulation problem. Fundamentally change" alone big" phenomenon, so that large shareholders and small shareholders convergence, optimize capital structure, build a reasonable mechanism of corporate governance, improve the performance of the company.According to principal-agent theory, with the proportion of the first shareholder increases, the controlling shareholders have the ability also has the power to supervise agent, the agent to the greatest degree of client work, so that the interests of the two possible causes tend to be consistent, the performance of the company or the improvement of the performance of. But with the shareholding percentage increase, will cause the dealership contention, who want to control the company’s resources, thus is not conducive to the company’s business, but once the first major shareholders have absolute control, will make more efforts to improve the company’s performance, the cash flow right dominant, due to the larger share will enjoy more sharing of benefits, however when the proportion of the first shareholder is too high, and other shareholders proportion difference is too large, the equity is serious unbalance, it will have a large shareholders of the small shareholders’ expropriation and other negative effects on the performance of the company, produce adverse effect. Based on the above background and theoretical analysis, this article to the first big shareholder as the angle of view, from the perspective of comprehensive effect of the proportion of the first shareholder on corporate performance in the presence of interval effect", namely the rise, decline, rise, decline. Think of the" interval " effect is determined by the proportion of the first shareholder increases the incentive and supervision on the performance of the company and the positive effect of the first major shareholders to obtain private interest on small unit expropriation caused decline in the performance of the integrated results reflecting the negative effect, in order to explore the first major shareholders of listed companies and there exists an optimal ownership structure, improve the performance of the company.In theoretical analysis, we first introduce some core concepts, then the recent research literature at home and abroad were summarized and concluded, the final analysis of the proportion of the first shareholder equity nature and impact on company performance theory, as the empirical research to do a very good bedding. In the empirical study, this paper made use of in the Shanghai and Shenzhen Stock Exchange listed A shares of the558from2007to2009three1674data as the sample observations, descriptive statistics, regression analysis, verify the hypothesis, the conclusion. Finally the empirical conclusions explained, and for the improvement of China’s listed companies’ ownership structure and optimization of corporate governance, a profound understanding of the first major shareholders, the company to improve the performance of the proposed policy suggestion.