The Impact Of Shareholding Structure On Cost Efficiency

As an important part of the national economy country,promoting the development of the manufacturing sector is extremely important. The study on the relationship between shareholding structure and efficiency has been the focus of attention of entrepreneurs and academics.Shareholding structure has an impact on the company’s operating efficiency through the governance mechanisms.Rational shareholding structure will weaken the principal-agent conflict,and will conduce to higher corporate governance efficiency and operating efficiency. Therefore,the paper studies the relationship between shareholding structure and business cost efficiency based on listed companies in manufacturing.Firstly,the paper uses the shadow cost model to measure the cost efficiency based on the sample data of our country’s605listed companies in manufacturing between2003to2012. The results is that our sample companies’cost efficiency is low,which the average is only0.49. In addition,in terms of allocative efficiency,the level of technology efficiency of enterprise is a key factor in the quality of its cost efficiency,which makes more contribution to CE’s growth.Secondly,the paper studies the relationship between the companies’shareholding structure and its cost efficiency.Specifically,this paper characterizes shareholding from equity nature and ownership concentration and big shareholder control,then establishs a panel data regression model.The regression results is introduced from the following two aspects.On one hand,three indicators of shareholding structure have the positive influence on the cost efficiency,that is,equity nature and ownership concentration and big shareholder control have positive effect on the companies’cost efficiency.On the other hand,other variables also have a significant correlation between the cost efficiency. Among them.the enterprise scale and management capabilities are positively correlated with cost efficiency,and principal-agent conflict and cost efficiency are negatively correlated. In addition,the number of board meetings has a negative influence on the cost efficiency,which indicates that our listed companies in manufacturing exist poor boardmeeting decision-making efficiency.Finally,the paper summarizes the empirical findings.And based on the research findings,several policy recommendations related are given to improve the cost efficiency.