Research And Experience Ownership Structure Characteristics In Corporate Life Cycle

Life cycle theory is an important part of modern management theory; it is also an important branch of the strategic management theory. Many companies have a successful practice by the guidance of this theory. More and more scholars choose research questions from the perspective of the corporate life cycle.Ownership structure is an important part in corporate governance research. Ownership structure directly affects the large shareholder occupation interest of minority shareholders question, which is the second agency problem in the usual sense. In recent years, the academia has in-depth studied corporate performance which is affected by the ownership structure. There are also many researches about the relationship between ownership structure and corporate performance in the different life cycle. But, under the present condition of economy market, whether there is an intrinsic link between life cycle and ownership structure? What is the feature of the ownership structure in different life cycle? These questions have not been well researched by the academia.Size, risk and growth capability in the different life-cycle is different. The same companies in the different life cycle also face different size, risk and growth capability. This factor will indirectly affect the ownership structure of the firm. At the same time, enterprises have an active selection process to adjust the ownership structure to adapt to the situation facing. So, the ownership structure and corporate business life cycle has a deep relationship.Yet the relationship between the life cycle and ownership structure has been few studied in native and foreign. Domestic scholars mostly research the ownership structure factors from political environment, legal protection, the ultimate controller level and so on. There is little research for company own reasons. If the characteristics of the ownership structure will change with the corporate life cycle presents the corresponding cyclical changes? Depth study of this issue is the theoretical value and practical value of this paper.Firstly, this paper reviewed and commented the literature about the factors of ownership concentration, ownership balancing degree, separating extent of ownership and controlling right. Then we analyzed the relationship between ownership structure and life cycle by theory, and put forward the hypothesis of this paper. On the basis of assumptions made herein design and sample selection model. In the part of empirical analysis of the samples were descriptive statistics, correlation test, and regression analysis and robustness tests. In this paper, the regression model is used multiple linear regression model. Ownership concentration, ownership balancing degree, separating extent of ownership and controlling right is the dependent variable, The life cycle and the square of life cycle is the main explanatory variable. Robustness test is achieved by replacing the variables; this paper uses the sales replacing cash flow as a division of the life cycle.This article chose the sample selection from 2007 to 2014, China’s A-share listed company’s data, the main features of corporate ownership structure analysis after the split share structure reform. Empirical structure shows that when companies in the growth stage has a lower concentration of ownership, higher in maturation stage, reduce in degenerating stage. There is a "U" Shape structure between concentration of ownership and life cycle. When the company in the growth stage has a higher equity balance degree, lower in maturation stage, rise in degenerating stage. There is an inverted "U" shaped relationship between the degree of equity restriction and life cycle. When the company in the growth stage has a lower separating extent of ownership and controlling right, higher in maturation stage, reduce in degenerating stage. There is a "U" shaped relationship between the separating extent of ownership and controlling right and life cycle.