Research On The Correlation Of The Ownership Structure And Corporate Performance Of SEM China Based On Life Cycle Theory

Equity structure, the contractual arrangements between shareholders, shows the configuration ofpowers inside the company and has a deep relationship with company’s governance structure, strategy,growth and especially the performance. The research of equity structure, particularly the theory andempirical study, has been a hot issue recent years in China. As a new thing, most of the SEM listedcompanies are private and family companies that have significant differences with main board listedcompanies in scale, profitability, growth and so on.Now people are paying more and more attentionon their business performance and the development trend.In this background, it is valuable to studythe equity structure characteristics of the SEM listed companies and the relationship between equitystructure characteristics and corporate performance.Drawing lessons from former research, the paper states the current situation of equity structure’sinfluence to corporate performance and therefore, finds out the points to be improved. Based on theresearch of related theory, this paper introduces life-cycle approach to examine the relationshipbetween equity structure and performance of SEM listed enterprises, exploring the relationship indifferent life cycles and come up with corresponding advices.Next is the paper’s research idea andframework. Chapter Two lays the theoretical foundation of the paper, including the theory andinfluence of equity structures and life-cycle. Chapter Three analyzes the characteristics of the smalland medium-sized listed enterprises and their equity structures and divides the life-cycle according tocash flow. Chapter Two and Three underlie Chapter Four which firstly analyzes the relationshipbetween variable quantity in equity structure and performance, brings forward the hypothesis and thenhas the empirical analysis which mainly uses descriptive statistics, correlation analysis and linearregression. It turns out that the influence of equity concentration, executive shareholding ratio tocorporate performance basically corresponds to the hypothesis while legal person shares andcirculation stock ratio not. Chapter Five proposes several advices to small and medium-sized listedenterprises. The last are two shortages of the paper and the future research directions.