The Research Of Correlation Between The Equity Structure Of Listed Companies And The Company Performance

Shareholding structure as the core of the corporate governance structure has been a research focus, especially in the context of the split share structure reform in China, ownership structure and corporate performance relationship is very necessary.1827listed companies of China’s Shanghai and Shenzhen A-share market data for the three years of2009-2011, the overall situation of the Chinese Listed Company’s shareholding structure and corporate performance were analyzed. The same time, the departure from the market structure, combined with China’s actual situation of the company is divided into two categories:the company in a competitive market structure, such a combination of the characteristics of perfect competition and monopolistic competition; in the monopoly market structure companies, these companies combines the characteristics of an oligopoly market and completely monopolize the market.During specific empirical analysis, the paper selected wholesale and retail trade as a representative of the company in a competitive market structure, select1182009-2011three-year data for the empirical research. Select the same black metal industry and non-ferrous metals industry in a monopoly market structure of the company on behalf of an empirical study selected69listed companies for the2009-2011three-year data. Through the research, we have come to the following conclusions.(1) China’s listed companies on the overall phenomenon of "dominance", the largest shareholder stake of38.82%on average, while the second largest shareholder to the fifth largest shareholding ratio of less than the first half of the major shareholders, the overall equity checks and balances low. At the same time as China’s share reform policy being carried out, the proportion of China’s state-owned shares and legal person shares decreased year by year, the equity concentration also decreased year by year. As the biggest achievement of the share reform is the proportion of the outstanding shares of more than90%, and this number is increasing year by year, in accordance with this momentum, China is about to usher in stock circulation times.(2) For the pros and cons of ownership concentration and equity balance degree, we can’not simply come to a unanimous conclusion. Data under different market structures, we found that the relationship between ownership structure and corporate performance is not the same in different market structures, and in some cases are quite different. Company in a competitive market structure, equity is relatively concentrated, there is an absolute control of the company’s shareholders, the higher the degree of concentration of ownership, corporate performance is more excellent; equity degree of checks and balances and corporate performance has nothing to do. Company in a monopoly market structure, there is an absolute controlling shareholder ownership concentration and firm performance in an inverted U-shaped relationship, ownership checks and balances and corporate performance.