Enterprise Life Cycle, Equity Structure And Corporate Performance Correlation Analysis

Since the "The enterprise life cycle" view has been put forward, More and more scholars join into the study of enterprise life cycle associating with the business performance. The process of reform and opening up, laid a solid foundation for the establishment of joint-stock enterprise system in China. Incoming of foreign research theory makes the domestic modern enterprises pay more and more attention to in the process of the development of the corporate governance problems. As an important part of corporate governance, Equity structure becomes the focus of research. The research of this field focuses on the distribution of equity ownership structure, and What kind of impact on enterprise performance that will exert. China’s special economic system makes the enterprise ownership structure exists with its own characteristics, causing we can’t completely follow the equity model of other countries. Therefore, the study of ownership structure based on the data of Chinese listed companies is more important.This paper choosing to discusses on the relationship between the ownership structure and corporate performance, under the perspective of enterprise life cycle theory. This paper adopting the combination of case analysis and empirical analysis methods to study relationship between ownership structure and corporate performance. Firstly,choose the case companies respectively from the growth stage and mature stage, they are HICONICS Co.Ltd and Zhengzhou Yutong Bus Co.Ltd. Analysis of different life cycle phase that affect the relationship between ownership structure and corporate performance. Then separately do regression analysis, we can conclude the relationship between ownership structure and corporate performance. In this paper, the finally conclusions is following:When companies are on the growth stage, relationship between ownership concentration and corporate performance is positive u-shaped,and it’s inverted U shape between Equity balance degree and enterprise performance; When companies are on the mature stage, the relationship between ownership concentration and corporate performance becomes inverted u-shaped, and at this stage equity balance degree has no significant relationship with corporate performance.