A Empirical Study On The Relationship Among Ownership Structure, Diversification Strategy And Corporate Performance About Chinese Companies Listed On GEM

Because of vigorous growth of GEM market development, the GEM study foracademic has gradually become a research hotpot.The relevance of ownership structureand business performance of listed company has always been a hot and difficult problemin theoretical and empirical research, but the conclusions differ greatly as differentperspectives on this subject exist. The ownership structure, which is the basis of thecorporate property not only decides the effective of the company controlling but alsodetermines the performance of the company. on the one hand GEM listed companies withhigh growth, high innovative features, the company’s rapid development has becomeinherent requirements of the development of its diversification strategy, on the otherGEM listed companies raise rates superb phenomenon, forcing companies to find areasonable path to fully absorb the ultra-raised funds, and therefore diversificationstrategy is also increasingly becoming a strategic choice GEM listed companies.Previous studies are pure research about the relationship between ownershipstructure and corporate performance or the diversification strategy and corporateperformance, but mostly the motherboard and small plates listed companies as researchobjects. Specialized studies on GEM listed companies is relatively little. Besides, most ofthese studies did not try to put ownership structure, diversification strategy and corporateperformance together to explore their interaction. So this paper attempts to use theownership structure-diversification strategy-corporate performance paradigm toexplore the effect of ownership structure and diversification strategy on corporateperformance, the effect of ownership structure on diversification strategy, the intermediation effect of diversification strategy between ownership structure andcorporate performance.With the research methods of the combination of theoretical analysis and empiricalanalysis, this paper firstly is the summary of theories related to this study, including theprincipal-agent theory and stakeholder theory. And then systematically organized andreviewed the previous studies to identify gaps in previous studies, on the basis of thePreliminary work, I presented this paper’s oretical framework and the research hypothesis.Through empirical analysis, with the annual report data of355companies listed on GEMbefore2012as sample, using factor analysis, descriptive statistics analysis, correlationanalysis and regression analysis to explore the relation among ownership structure,diversification strategy and corporate performance.Through empirical research, this paper get the following conclusion: the relationshipbetween the proportion of corporate share and executives shareholding and corporateperformance is significantly positive, the relationship between outstanding shares andcorporate performance is significantly negative. While there is no significant relationshipbetween equity balance degree and corporate performance; The relationship betweendiversification strategy and corporate performance of companies listed on GEM in ourcountry is significantly positive; The relationship between equity concentration degree,executives shareholding proportion and diversification strategy is significantly positive.The relationship between equity balance degree, outstanding shares proportion anddiversification strategy is significantly negative. The relationship between corporationshare proportion and diversification strategy is significantly positive but without obvioustest; Equity concentration degree, outstanding shares proportion and executiveshareholding proportion in equity structure not only has direct effect on corporationperformance but also has indirect effect through carrying out diversification strategy.On the basis of above research, this paper puts forward the following suggestions:reform ownership structure, increase the institutional investor shareholding, actively explore the optimal model of executive incentive, steadily push forward thediversification of the companies listed on GEM in our country, realize the collaborativedevelopment of the main business and extending business in the company.