Research On Effect Of Ownership Structure To The Corporate Performance Of Chinese Manufacturing Listed Companies

Since the separation of enterprise’s ownership and management, the relationship between ownership structure and corporate performance has always been a hot topic in academia at home and abroad. As one of the burgeoning capital market, China has the bright Chinese characteristics. This paper aims to test empirically the effect of ownership structure on the corporate performance by using the data of Chinese manufacturing listed companies.On the basis of carrying out theoretical analysis and the research status at home and abroad, this paper tries to reconsider the classical question from the perspective of enterprise life cycle theory. Previous investigation have shown that the industrial competition influence the choice of the best ownership structure, so this paper selects the manufacturing listed companies which has strong competition as samples to make the study more representative. Besides, distinguished with traditional studies, this paper used Total factor productivity as indicator of corporate performance from the perspective of input and output, aiming to make new interpretation on the classical question.In this paper, we firstly propose research hypotheses according to the existing theories and empirical study. Then we use economic models and statistical methods to study the productivity in the manufacturing listed companies and further research the relationship between ownership structure and productivity at different stages. The results indicate that (1) Most of Chinese manufacturing listed companies are in the period of growth, which are driven by its biggest competitive advantage, an abundant supply of low-cost labor, while lack in the core technologies and self-owned intellectual property rights. (2) For enterprises in the different stages of the industry life cycle, the effect of the ownership structure on corporate performance is different. Specifically, for enterprises in the period of growth, ownership concentration and state-owned nature are beneficial to the improvement of corporate performance, while equity balance is irrelevant to the corporate performance. For enterprises in the mature stage, ownership structure has negative correlation with corporate performance while state-owned nature is not relevant to corporate performance and equity balance exists positive correlation with corporate performance. Finally, this article proposes some suggestions to improve the manufacturing enterprise corporate governance structure.