Effect On Eorpomte Performance Done By Ownership Concentration

Researches show that under different ownership structure, client undertakes different risk and gets different benefits of agent’s behavior and the gains of different monitoring capability of agents, and monitoring capability and enthusiasm of agents are also different. Ownership structure is regarded as property rights basis of corporate governance structure. Internal ownership structure will have a direct impact on the formation and operation of corporate governance modes, thereby affecting the corporate performance. Keeping dispersed ownership structure or centralized controlling structure has become a problem that practical and theoretical circle constantly thinking about. According to these thinking and exploration, ownership concentration, a main index to measure the degree of company stock right decentralized and centralized, has been cognized gradually. Ownership concentration plays a critical role in protecting interests of investors and keeping balance of interest relationship among stakeholders in the company and other aspects.With the continuous progress and development of our country, a large number of small and medium enterprises make more and more important contribution to economic development. In 2004, as an important part of Chinese multi level capital market, the SME Board Listed Companies officially launched in Shenzhen Stock Exchange. After more than ten years of innovation and development, the scale of SME Board Listed Companies continues to expand. To the end of December 31 st, 2013, the number of SME Board Listed Companies has expanded from 8 at the beginning to 701 and the total market value is more than 37,163 billion Yuan. The whole structure is becoming more and more mature and perfect. The rapid development of SME Board Listed Companies provides a powerful approach for the financing of small and medium enterprises in our country and the study of this problem has a strong theoretical significance and practical significance.This paper, based on the principal-agent theory and property rights theory, carry on theoretical analysis about the ownership concentration’s effect on the corporation performance of SME Board Listed Companies in our country and put forward three hypotheses: first, effects of the first shareholder’s stock proportion in SME Board Listed Companies on corporation show interval features with different holding patterns; second, the relationship between ownership concentration and corporate performance shows to be a U. Corporate performance decrease first and then increase along with the increase of ownership concentration; third, ownership concentration’s effect on the performance of SME Board Listed Companies shows differently with industry difference.Writing path for this paper will be preface, literature review, summary overview, empirical study design, empirical analysis, conclusions and suggestions. The first chapter mainly introduces research background, significance, research path, methods and basic framework. The second chapter is literature review, mainly reviewing the study of domestic and foreign scholars and summarizing study results. The third chapter is an overview of the general theory. The main contents include the definition of ownership concentration and corporation performance, introduce basic concepts of SME Board Listed Companies in our country and explain basic theory of both and mechanism of ownership concentration’s effect on corporation performance. The fourth chapter is empirical study design, mainly including theoretical analysis, assumptions, variable selection and model building. The fifth chapter is empirical analysis, mainly making empirical data analysis through descriptive statistics, correlation analysis, regression analysis and other statistical methods for ownership concentration’s effect on corporation performance in SME Board Listed Companies in our country, so as to gradually validate theoretical assumptions. The sixth chapter is conclusions and recommendations, mainly drawing conclusions and recommendations through reviewing and summarizing. In summary, based on empirical conclusions, put forward specific recommendations for optimizing ownership concentration and improving corporate performance while point out limitations and future research prospects of the study.