The Influence Of Foreign Shareholdings On Internal Governance Structure In Listed Financial Compaines

Since the reform and opening-up policy, invite investment has always been one of the government’s focus in Chinese socialist market economy. In the 21 st century, the prosperity of Chinese economy partly benefits from the influx of foreign investors and investment institutions with a large number of advanced production technology and management experience, which promote the rapid development of our industry and commerce. With the reform of joint-stock enterprises and improve of economic marketization, the scale and scope of foreign equity participation from the financial industry which masters the economic life line of the country are constantly expanding. The influence on the internal governance structure of listed financial companies for foreign equity participation in China, not only can help us to further grasp the effect on corporate governance of listed financial companies, and prefect our internal governance structure of listed financial companies, but also can help us to promote the comprehensive and rapid development of the financial industry in China by using a series of advanced method and experience of corporate governance. This paper selects the 47 listed financial companies as the sample to build dynamic panel VAR, and uses STATA economic application software of the influence on foreign equity participation which respectively has an impact on ownership concentration, board composition, and manager incentive of internal corporate governance structure through empirical research and analysis. Through the empirical analysis, this paper mainly gains the following conclusions: foreign equity participation will improve equity concentration of the listed financial companies; foreign equity participation will optimize board composition of the listed financial companies; the proportion of foreign equity participation and executive shareholding of the listed financial companies will be negatively related, but the proportion of foreign equity participation and mangers incentive of the listed financial companies will be positively related; Ownership concentration will be the most affected the internal governance structure of listed financial companies by variables.