Research On The Relationship Between Ownership Concentration And Company’s Performance

In the modern enterprise management, the corporate governance layer andcompany management are becoming more and more concerned of the company’sperformance. Many companies put the company’s performance as a means ofevaluating enterprise survival condition, they also think about new ways to improvethe performance of the company. Researchers since the last century began to noticethat there was a certain relation between ownership concentration and the company’sperformance. They had their corresponding results in the field of the researches.However, as the researchers chose the different objects for their research, the resultsalso show in diversity. This paper chose a popular industry, the real estate industry, asthe research object.113qualified real estate companies had been chosen in empiricalresearch, in order to find the relationship between ownership concentration and itsperformance in the real estate industry. The paper found out a suitable range ofownership concentration to optimize the structure of the equity, so as to improve thelevel of the company’s performance. At the same time, I hope that this research canprovide some reference to other researchers in this field.In this paper, I chose the sample data from the real estate companies listed on theShanghai and Shenzhen security exchange market. The data years were from2010to2012. Deleted the data which didn’t meet the requirements. Finally,113companieswere chosen. First of all, the paper expounded on the selected topic theory, introducedthe related concepts and related research achievements of previous researchers. Then, the paper carried on the factor analysis to the enterprise’s financial data in order toevaluate the performance of company. The correlation analysis and regressionanalysis had been done. I found that the relationships between the ownershipconcentration index which named CR5and H5with corporate performance wereU-shaped. The paper calculated the ownership concentration range when thecompany’s performance reaches the best level. At last, according to the research, thepaper put forward some suggestions to the real estate industry in our country.