The Impact Of China’s Pharmaceutical Industry Listing Corporation Shareholding Ratio On The Company Operating Results

Shareholder equity structure is a central problem to be considered in the listing corporation. Ownership concentration degree that is the proportion of large shareholders has been the focus of all the discussion cause impacting on the performance of the company. Reasonable ownership structure has an enormous positive effect in promoting on company performance. This article basing on the principal-agent theory, the theory of control right and the theory about the management and the company performance, and taking the Shanghai and Shenzhen stock exchange to 34 listing corporation data in the pharmaceutical industry as the study sample, net profit to listing corporation, EPS and ROE as the performance index, the largest shareholder of the company and the proportion of top ten shareholders as the choice of independent variables, and selecting the total assets, The proportion of shares in circulation, two dummy variables(whether to implement equity incentive and whether it is state-owned) as control variables. The relationship between China pharmaceutical industry listing Corporation shareholding ratio and the performance of the company are empirically researched by using the single factor model analysis and linear regression model. The study found that using the net profit as the company performance indicators: there is a significant positive correlation between the biggest shareholder and the proportion of top ten shareholders and corporate performance, the total asset size and the performance of the company are significantly correlated, the proportion of shares in circulation size are significant positive correlation with the corporate performance, when the control variable respectively with two dummy variables, two dummy variables to be explained are variable intensity of a certain degree of improvement, and then the model become more pronounced, whether it implements stockholders rights drive has a significant positive correlation with the corporate performance, whether it is a state-owned holding company has a significant negative correlation with the corporate performance. Taking EPS as the company performance indicators: all models are not significant in the whole. In other words, using EPS as an index to measure the corporate performance, the proportion of large shareholders has not significant correlation with the corporate performance. Taking ROE as the company performance indicators: all models are significant in the whole, Whether it is the biggest, the proportion of top ten shareholders or the size of total assets has a positive relation with the corporate performance. On the contrary, the proportion of tradable shares has a negative relation with the corporate performance. Finally, analyses the results by combining with the actual situation, and throws out some suggestions for implementation.