Nature Of Controlling Shareholder、Ownership Structure And Corporate Promise Fulfillment

Integrity is not only a market economy’s touchstone, but also a company’s important intangible asset. However, in recent years, China listed companies’ IOUs promise phenomenon often occurs, which tortures each investor’s nerve. Just behind this background, this paper studied the relationship between nature of controlling shareholder, ownership structure and corporate promise fulfillment. Controlling shareholder is the main promise fulfillment subject, about 50% low-quality promise come from it, whom is of great significance to study about. Ownership concentration and equity balance also affect the promise fulfillment.We can see, by the literature review, study on factors of equity existing in abroad is more classic than that of home. But both of them tend to convergence, that is, more and more article research problems between large shareholder and other stakeholder. There is very little literature tends to commitment fulfilment, related research just from honesty credibility, organizational commitment and corporate social responsibility. Few people study promise fulfilment from the perspective of equity, with empirical methods research, which offers me great opportunities and challenges.In this paper, we based on the fourth regulatory guideline, fulfill commitment announcements have already disclosed by listed companies in Shanghai and Shenzhen main board from February to June, 2014, to study the equity factors that influence on enterprise promise fulfillment. Based on principal-agent theory, incomplete contract theory et al, assumptions as follows: H1a:Relative to nature of non-state-owned corporate promise fulfillment, the controlling shareholder of state-owned ones are more likely to do it. H1b: under the same condition, The higher the controlling shareholder’s stake, the lower probability to fulfill the promises. H2:On equal conditions, the higher the Equity concentration, the lower probability to fulfill the promises. H3: under the same conditions, the higher the equity balance degree, the more probability to fulfill the promises.The study finds that nature of controlling shareholder and its shareholding ratio have a significant impact on corporate promise fulfillment, the state-owned properties are better than those of non-state in promise fulfillment, while the higher proportion ratio the lower corporate performance, which tested hypothesis 1. Ownership concentration have a significant positive impact on promise fulfillment, that is to say, the higher the equity concentration, the lower probability to fulfill the promises. As an important power of supervision, equity balance degree, however, do not pass the significant level. The reason may be, capital market development in our country at present is not sufficient, lack of social credit system and lack of integrity of regulatory environment, the situation is difficult to have big difference in the short term. What’s more, background of the Split-Share Reform is an important factor affecting corporate promise fulfillment.Based on the above research, this paper argues that we can promote the enterprise promises to fulfill from the following aspects:(1) the controlling shareholder, strict self-discipline and improve performance consciousness;(2) the company ownership structure, ownership concentration should keep the moderate level, nature of state-owned listed companies can choose employee-owned, social capital participation methods to optimize equity structure, perfect the organization internal supervision and checks the balance mechanism;(3) country to deepen reform, improve the capital market integrity legislation, strengthen the supervision of the government, and create a good environment for corporate promise fulfillment.The main contributions of this paper are: based on the No.4 listed company regulatory guidelines under propulsion of the promise fulfillment special project, from the point of empirical research of controlling shareholder, equity structure on corporate promise fulfillment behavior. We found that both of nature of controlling shareholder and its stake have great effects on corporate commitment fulfillment, promise fulfillment of state-owned controlling shareholder have more obvious effect. But the higher the controlling shareholder stockholding and the equity concentration, the less likely the enterprise promises to fulfill. As an important power of supervision, equity balance degree, however, do not pass the significant level. Companies with background of the split-share reform, their overall promises fulfillment are better, which shows that, to some degree, in a country under the state-owned enterprises predominant the property right system, reform is a strong impetus to promote the healthy development of our capital market.