An Empirical Study On Impact On Company Performance By The Ownership Structure Of Family Business

With the development of Chinese market economy, the family listed companies have an increasingly heavy proportion of private enterprises, it has become an important business groups can not be ignored in China’s economic development.In addition,with the development of Chinese family businesses, more and more companies have met these three challenges’.shift, slowing economic growth and industrial restructuring and upgrading, it results China family business became the focus of the current domestic economic research. Based on family businesses listed in different ways, and the different starting points on expected development of the company, the correlations of direct and indirect listed family company between ownership structure and company performance were analyzed separately, hoping this paper provides a more rational perspective for research in this area.This paper selected three-year data of212listed family companies listed before2011in the domestic board, based on agency theory and combined with the latest research about internal governance structure of family business at home and abroad, to finish the theoretical analysis and empirical research about the correlations between family business ownership structure and company performance. In terms of company performance, we use factor analysis method to establish performance evaluation model, and finally obtained the dependent variable-Integrated Performance Factor; In terms of ownership structure, we set up five variables, namely, the proportion of family ownership, the proportion of the top ten shareholders, the extent of the checks and balances of equity, family cash flow rights, separation of ownership degrees. In the empirical analysis, this paper will make the direct and indirect listed companies samples analyzed separately, and the empirical results also show that family businesses ownership structure affects company performance in different ways through different method of listing:Direct listed family company’s ownership concentration, equity balances both positively correlated with corporate performance, the extent of pyramid structure separation of ownership negatively correlated with corporate performance, and the relationship between the cash flow rights and corporate performance shows an inverted U-shape; For indirect listed family company, ownership concentration, equity balances and corporate performance connected with an inverted U-shaped relationship, and cash flow rights were positively related to corporate performance, and the degree of pyramid structure separation of ownership were negatively correlated with company performance; In addition, the performance of non-pyramid structure holding company is better than pyramid structure holding company’s.Based on the results of this paper, we propose several recommendations to improve the ownership structure of listed family companies:to encourage family businesses listed directly; to complete information disclosure of the actual controller’s equity relationship; to improve the supervision mechanism of shareholders’behavior.