The Dynamic Relationship Between Ownership Structure And Corporate Performance

For a long time, ownership structure as an important and difficult problem in corporate governance has received the attention. At present, our country stock market ushered in the full circulation situation. With the circulation of restricted shares issued, the ownership structure of listed companies in our country also has new changes. At the same time, the state vigorously promotes the reform of state-owned enterprises, actively promotes the adjustment of state-owned shares, in order to enhance the efficiency of state-owned shares and the value, In this context, this article puts endogenous problems and dynamic endogenous in the two cases, in the hope of listed companies by empirical test reveals the dynamic relationship between ownership structure and corporate performance. This paper is based on the theory of principal-agent theory and information asymmetry theory. This paper choose the data from Shanghai and Shenzhen stock markets, including 1045 listed companies during 2007-2014, using the least squares (OLS), fixed effect model (FE) and two-stage least squares method (2SLS), generalized least squares method and the dynamic panel system dynamic torque estimation (GMM) and other methods, tries to explore from the perspective of both static and dynamic inter-temporal between ownership structure and corporate performance influence mechanism of action.Empirical results illustrate:(1) First of all, when ownership structure is regarded as exogenous variables, using the least squares (OLS) test the impact of ownership structure on corporate performance, found with nonlinear relationship between ownership concentration and corporate performance, equity balance degree of corporate performance have a significant role in promoting; (2) Then, when after considering the endogeneity problem and dynamic problem, we use two stage least squares (2SLS), fixed effect model (FE), generalized least squares method and system of dynamic torque estimation (GMM) to examine the ownership concentration and equity balance degree and managers of the relationship between ownership and corporate performance. In the control of endogenous and found that the influence of ownership structure on corporate performance is still have a significant impact, but the influence direction changed in 2SLS regression results. At the same time as the model from the static to dynamic, ownership concentration and managers shareholding variables significantly lower, and some significant disappear, dynamic and endogenous and has important effect on the results of the study; (3) The third, we use the dynamic panel System GMM to examine the current corporate performance is the influence of ownership structure, the results show that the current corporate performance has a weak influence on ownership structure, only in the tobin Q variable for performance test, the company’s performance has a significant influence on equity balance degree and managers shareholding, the ROA as performance test of corporate performance variables of three ownership structure variables had no significant effects; (4) Finally, considering the possible inter-temporal between ownership structure and corporate performance, we are in a dynamic panel data model, using the system of generalized moment estimator (System GMM) test on previous ownership structure (or corporate performance) and corporate performance in current (or ownership structure). The study found that not only performance of the previous period have a significant impact on equity restriction, but also ownership concentration of the previous period and current performance have the inverted "U" type of relationship. But the relationship is not stable, it affected by performance indicators selection.