The Empirical Study Of The Relationship Between Ownership Structure And Corporate Governance Performance

A good ownership structure and its impact on corporate governance not only help to reducebusiness risk and agency costs, but also conducive to the participation of different shareholdersincentives to invest and promote long-term stability of a steady growth in the regionaleconomy.In recent years, corporate governance performance in of listed companies in Sichuanand Chongqing is weaker compared with the developed regions. The shareholding structure oflisted companies in the tow areas is irrational and the governance mechanism is still not perfect.It is recognized that there is a gap in economic development among different areas of theenvironment。Enterprise development is inseparable from the economic and social environment，the investment return relay on improving the investment environment. The ownership structure oflisted companies, the relationship between governance and governance performancecharacteristics and mode is based on the area in Sichuan and Chongqing.Through some reasonable sample and empirical research, we have a comprehensive analysisof the relationship between corporate governance performance and ownership structure in Sichuanand Chongqing. We made some valuable suggestions in practice for the shareholding structure oflisted companies in Sichuan and Chongqing and enhance corporate governance performance.Some main conclusions through Empirical Analysis are as follows:1. The largest shareholder of listed companies in Sichuan and Chongqing showed relativelycontrolling position. The largest shareholder and the top five shareholders showed a significantpositive correlation between the structure and the corporate governance performance. The index Zis small, representing a small counterbalance with large shareholders. Major shareholders oflisted companies in Sichuan and Chongqing rarely appear the behavior "internal control" and harmthe interests of the company. Meanwhile, we should pay attention to the positive role of blockholders in order to avoid such bad behavior.2A big margin reduction of state-owned shares and legal person shares, there is no significantpositive correlation between the state-owned shares and corporate governance performance. Legalperson shares showed no significant negative correlation. It is showed a significant negativecorrelation between the outstanding shares and corporate governance performance. Because of thereduction of state-owned shares, considering for the political or social objectives rather thaneconomic goals interfering with business management behavior is greatly reduced, and agovernment background helps the company’s financing.The state-owned shares is not in a relativeholding state, so a positive correlation was not significant.Because of small proportion ofcorporate shares, it should increase transparency and play a positive role in related party transactions and corporate governance. The market impact emerge from the non-tradable sharesbecome tradable shares should be prevented.3The listed companies Asset-liability ratio in Sichuan and Chongqing is high, so the finance costsis increased. The improper use of funds will affect the company’s perfect and operating income.Not only the capital′s structure needs to be improved, but also the positive financial leverageeffect should be utilized.