An Empirical Study On Ownership Structure And Corporate Performance Of Pharmaceutical Industry In China

Ownership structure arrangement is an important part of corporate governancemechanism, and it has always been a heated research area in in recent years,Reasonable ownership structure can strengthen the company’s internal and externalgovernance, and play an important role in improving corporate performance. Thedifference of ownership structure can have a great impact on internal supervision,incentives, and constraints. Many scholars at home and abroad have a long lastingdispute on how ownership structure affects corporate performance, but they has notyet reached consensus on the uniform. Therefore, the study of relationship betweenownership structure and corporate performance still has practical significance.In this paper, we chose79listed companies as samples, using the panel data ofpast three years(from2009to2011) for empirical analysis. Separately we use theequity property, ownership concentration, equity balance degree and equity structureto reflect the status of listed companies ownership structure. We also use Tobin Qvalue, ROE, ROA as explained variable, to build the regression model. We didempirical research by using SPSS software and STATA software.Through empirical analysis, we can get the following conclusions:1. The natureof equity and corporate performance is related, and non-state holding company’sperformance is relatively higher;2. The ownership concentration and corporateperformance have inverted u-shaped curve relationship, equity concentration too highor too low are detrimental to the corporate performance;3. The equity balance degreeassumes the inverted u-shaped curve relationship with corporate performance. Thereis a optimum proportion.4. The proportion of state-owned shares is negativelycorrelated with corporate performance. Legal person share proportion is positivelycorrelated with corporate performance. The relationship between public offeringsshareholding and corporate performance is not obvious. Finally, on the basis of theempirical research conclusion, this paper put forward some proposals to improve thepharmaceutical enterprise corporate governance structure.