Research On The Nonlinear Influence Of State Ownership To Corporate Performance Based On Multi-dimensional Perspective

The efficiency of state-owned enterprises has been the focus of the previous reform of state owned enterprise,the low efficiency of state-owned enterprises is believed to be caused by the dominance of state-owned shares, The relationship between state ownership and corporate performance has been academic dispute for a long time. How to correctly examine the state-owned equity effect, optimizing the proportion of state-owned shares is a major issue of corporate governance theory and practice of the reform of state-owned enterprises to solve. Existing researches using non-tradable state-owned shareholding to present ratio of state-owned equity scale ignore the state-owned legal person shares and the ultimate state-owned shareholding under Pyramid structure, and cannot accurately reflect the actual scale of state ownership. At the same time, the existing literature make prior assumptions that state-owned shares and corporate performance are simple linear relationship, and capture nonlinear effect just by adding quadratic or cubic, but the nature is still using linear econometric model method to solve the non-linear problem, it is difficult to accurately reflect the true relationship of state-owned equity of enterprise performance. This reveals that a new perspective and measurement methods for further research is of positive significance to the relationship between state ownership and corporate performance.This paper uses the ultimate state-owned shareholding as the proxy variable of state-owned equity, using 2004-2014 in Shanghai and Shenzhen Stock Exchange A shares of state-owned listed companies large sample data, basing on PSTR model to investigate the relationship between state ownership and corporate performance and capture state ownership on firm performance nonlinear effects, with different government control level, competition in the industry attributes further subdivision of state-owned listed companies, test the differences between state-owned shares and corporate performance in the different types. According to the empirical of executive compensation and business scale perspective, multi-dimensional heterogeneity China state-owned listing Corporation under the state-owned equity impact on corporate performance difference. The empirical results show that although the whole state-owned equity has a promoting effect on enterprise performance improvement. But this effect is nonlinear in form, when the p roportion of state-owned shares is below a threshold value(25.6%), the state ownership on firm performance to promote effect mainly, with the proportion of state-owned shares gradually crossed the threshold value, inhibitory effect of state-owned equity of enterprises performance gradually increased, promoting effect gradually weakened, different government control level, competition in the industry attribute of state-owned equity of enterprise performance effects of has significant difference; executive c ompensation, firm scale state ownership on firm performance has a moderating effect on, along with the executive compensation, firm size respectively crossed the threshold value, state-owned equity on firm performance by the negative impact into a positive impact. And the executive compensation and the threshold value is high, requiring a high level of executive compensation in order to realize the on state owned stock and corporate performance moderating effect.The conclusion is that we need to abandon th e inherent thinking, and objectively examine the role of state-owned equity. Classified optimization of state-owned equity ratio, the positive impact of maximizing the state-owned equity. Pay attention to executive compensation, corporate size and other fa ctors, to make up for the limitations of state owned equity governance.