The Empirical Research On The Relationship Of Ownership Structure And Corporate Performance Of Chinese Listed Electric Company

The electric power industry is a natural monopoly industry as it is capital and technology intensive. And it is the key basic industry for national security and economy. With the expanding demand of electric power, the Chinese electric power industry has transformed from infrastructure to structure reform. And now the deepening reform is carried out to promote the operation efficiency. Ownership structure affects the corporate behavior and performance as it is the foundation of corporate management structure.The listed electric power corporations are the research object of this study. And the empirical research of the relationship between ownership structure and corporate performance has been investigated. The sample data is selected from the electric companies listed in stock markets of Shanghai and Shenzhen from 2007 to 2014. The composite score of corporate performance has been computed by principal component analysis in factor analysis. And regression analysis method is used to verify the relationship between the equity property, ownership concentration and corporate performance.The results show that both the proportion of state-owned shares and the ratio of circulating stocks are negatively related to corporate performance. The less the proportion is, the better the corporate performance will be. Additionally, non-significant association is found between the ratio of legal persons-shares and corporate performance. Rather, the ownership concentration is revealed to have remarkable influence on corporate performance. The higher the ownership concentration is, the better the corporate performance will be.In view of the above results, three suggestions are proposed correspondingly. Firstly, the proportion of state-owned shares should be decreased reasonably. Secondly, standard management should be adapted to the investors of listed electric power corporations and relevant laws and regulations system should be strengthened. Finally, the management mechanism of listed corporations should be normalized and the capital market regulation should be reinforced.