Enterprise Life Cycle, Ownership Structure And Corporate Performance

With the improvement of China’s capital markets, the establishment of modern enterprise system, as well as expanding the size of listed companies, research topics on ownership structure and corporate performance gain more and more people’s attention. So far lots of studies about the relationship between ownership structure and corporate performance cannot come to exactly the same conclusions. From a research and technical updating perspective, how ownership structure promotes corporate performance is a constantly improve topic. Using the method of case study to the industries Jinan Qingqi and GAC Changfeng, establishing a new perspective of enterprise life cycle, and employing principal component analysis and signed rank test, we study the impact on corporate performance by ownership concentration and ownership balances from different life cycle. The results show that, at different stages of life cycle, ownership structure and corporate performance show a different correlativity, and thus prove ownership concentration and ownership balances play an important role in the success of the enterprise. And policy recommendations to the ownership structure in which the enterprise life cycle stages adapted:the start-up and the recession period enterprises should maintain a high concentration of ownership; growing period enterprises should adopt a high concentration, low balance ownership structure; while mature period enterprises need to build balance ownership structure of the major shareholders.