Analysis Of Correlation Between Ownership Tructure And Firm Performance For Manufacturing Amily Listed Company In China

Family business is one of the most popular kinds of enterprise forms in the world，it isconsidered to be biggest in quantities and complex in its internal structure among groups ofcontemporary enterprises as well. The rapid development of family business leads to the factthat more and more family business is stepping into the stock market. Within the period oftransition from traditional family firm to modern company, family companies in china arefacing the lack of capital and management.To get rid of these difficulties, Family firmsbegan to raise found through capital market，recruit talented manager from the outside.When going to public becomes the effective measure to raising money, study on theshareholding structure of family listed company in our country is very significant. It isbecause of the unique governance structure and equity structure that a series of managementbehavior of family business is still affected by the strong family will. After the reform andopening to the outside, the family business which is in transition need to rethink itsgovernance structure and the future. Whether has the perfect corporate governancemechanism, will determine the survival of the company. Ownership structure is one of thekey factors that influence efficiency of corporate governance. Ownership structure is theessential question in the study of corporate governance issues. How to find the optimalownership structure is also a hot topic between theoretical circles and practice. Too much sofar, there has been no empirical research is about the family of an industry listed companies.In this paper, by studying the influence of the ownership structure and corporateperformance of listed companies about the manufacturing family, the results have certainguiding significance to other types of family enterprise or other manufacturing listedcompanies.This paper selects the120manufacturing listed family companies in Shanghai andShenzhen stock exchanges from2010to2012as samples to study the relationship betweenthe ownership structure and firm performance. This article on the shareholding structure ofvariable selection focuses on ownership concentration and equity balance degree influenceon corporate performance. Ownership structure is chosen as the explanatory variable, thecorporate performance of listed companies is chosen as the explained variable, at the sametime, and the company size and asset-liability ratio is chosen as a control variable andcreates a multiple linear regression model. Which conduct empirical analysis of the relationship between ownership structure and company performance in China’s listedmanufacturing companies to seek optimal ownership structure to achieve the maximumcorporate performance. The results show that:(1) it is significantly inverted U-shapedrelationship between ownership concentration and corporate performance of family listedcompanies.(2) There is a significant positive correlation between the equity checks andbalances and corporate performance of family listed companies. This paper argues thatdifferent family businesses can find the optimal ownership structure of the companyaccording to their own characteristics. In the end, the paper points out the deficiency of theresearch. The paper puts forward relevant policy suggestions about how to ensure thesustainable development of family enterprises and how to establish perfect corporategovernance structure.