The Study Of The Relationship Between Ownership Structure And Liquidity Base On Corporate Ownership

The securities market is an important part of the modern financial system and plays an irreplaceable role in the modern economic life. Therefore, the healthy development of securities market is not only related to financial system in good operation, but to social stability and development. Market microstructure theory believes liquidity is a key feature of the securities market, a high degree of liquidity is indispensable to an ideal of securities market. However, there are a lot of factors affecting liquidity, the ownership structure is one of important factors, which is a decisive role on the corporate governance as the foundation of the corporate governance structure, Therefore, weighing the impact on liquidity, the ownership structure will be not only helpful to improve market liquidity, but conducive to the efficiency of corporate governance. Based on previous studies and special situation of Chinese stock market, the paper does further research on the relationship of Chinese listed corporation stock liquidity and ownership structure in the view of enterprise ownership.As a socialist country, China has its own uniqueness in the stock market. More and more non-SOEs listed on the stock exchange in the process of transition from planned economy to market economy. However, there are few studies which consider enterprise ownership in the previous studies on the relationship between ownership structure and liquidity. In addition, with the development of institutional investors, it is particularly important in the study of the relationship between ownership structure and liquidity, while some scholars did not detail the alternative using the fund holdings instead of institutional ownership in previous studies, so the paper will research in the following two main aspects.On the one hand, according to the classification of SOEs and non-SOEs in Shanghai and Shenzhen 300 index stock in the perspective of enterprise ownership, this article takes advantage of multiple regression analysis method to study the relationship between their respective ownership structure and liquidity, and points out the similarities and differences between SOEs and non-SOEs in terms of the impact on the performance level of liquidity. On the other hand, shareholding structure further subdivides into fund holdings and other institutional investors to study their impact on the liquidity level and analyze the reasonableness of the fund’s holdings instead of institutional ownership.Based on the empirical results, in terms of insider ownership of Chinese listed companies, the paper concludes that China listing Corporation’s ownership concentration increase will raise the cost of information and transaction so as to reduce the level of the liquidity through comparative analysis, while SOEs have better performance and liquidity levels are more susceptible to the ownership structure. For institutional ownership, with the shareholding ratio increased, the liquidity level is also weakened, but non-SOEs are more vulnerable to affect. In the institutional ownership effect on the level of liquidity, the influence of fund shares accounted for a major position, other institutional ownership has little effect to liquidity.