The Relationship Between Ownership Structure Of Listed Companies And Its Risks

Stock rights represent the ownership of a company’s equity. A corporation can financethrough equity which may bring capital to a company for investment and expansion.However different financing role have different standpoint which will eventually bringdifferent risks to corporation. Therefore different structures of equity may have differenteffects on corporation’s risks.The purpose of this study is to learn the influences that structures of equity, includingthe property of equity, the ownership concentration and equity balance degree, may have oncorporation’s risk. As a result, the property of equity shares the largest affection among thethree, while equity balance degree shares the least. Factor Analysis Method, AnalyticHierarchy Process(APH), Regression Analysis are used in this essay. The data come fromthousands of companies from2010to2012when the non-tradable shares reform is done.The creation of this essay is the measurement of risk. Not only quantified quotas are used,but also qualitative quotas in measuring the risk of a corporation. Combining two aspect andforming one result as risk score in the end which differs from the former scholars’measurement of corporation’s risk.