The Ownership Concentration Of Family Business Effects On Business Performance

Compared to the market of main board and the small board, the GEM market mainly to serve the high-tech, high-growth industries,it has become a very important part of our stock market. Along with the vigorous development of the GEM market caused widespread concern in the academic community, the impact of Ownership Concentration on Operating Performance has become the focus of academic research. Therefore, using the date of ownership concentration and operating performance of GEM family business announced,the paper studies the governance of GEM family business and make use of the empirical method to analyze the impact of ownership concentration on business performance in the GEM family business.Firstly, the paper sort the domestic and foreign literature, and defines key Concepts. Secondly, starting from the theory of the separation of ownership and agency theory, the paper explain the effect of ownership concentration in different aspects. Then the paper chose 355 companies who is listed in the GEM market from 2009 to 2012 as the sample. it selected the return on equity as the dependent variable; the family shareholding, the first big shareholder’s shareholding, the top five shareholders’ shareholding, H5 index and equity balance degree Z5 as independent variables, asset-liability ratio and total assets as control variables.it used the excel in the process of date and use statal3.0 for empirical analysis. Before the empirical analysis, it made the descriptive statistical analysis in family company and non-family company with the dependent various,the independent various and the control various,in order to carry out on the relationship between different variables we use the correlation analysis. and then I used panel data model to research the relationship between company ownership concentration and business performance in different controlling mode and different family types. Through the above analysis, we drew some conclusions:firstly, the business performance of non-family company is superior to the family enterprises:secondly, the relative concentration of equity-based companies have higher business performance:thirdly. the family business in the first hierarchy have higher business performance.Finally, combined with the results of empirical research, it put forward some suggestions in order to optimize the equity structure of family companies in growth enterprise market:firstly, in order to improve the family company’s performance, we can take family business governance of relation, namely generic family-based governance; secondly, we should establish moderate concentration and several big shareholders of checks and balances equity structure:thirdly, we should strengthen the construction of the external environment to promote the development of family companies.