The Empirical Study About Effects Of Ownership Concentration On Business Performance Of High-tech Enterprise Based On Life Cycle Theory

Since the 1990 s, studies of corporate governance in the domestic and foreign academia set off a craze. For corporate governance, ownership structure is the foundation of corporate governance structure and business performance is a form of corporate governance. Ownership concentration is an important aspect of ownership structure. In recent years, the research on the correlation of ownership concentration and business performance is debated, and the main views are positive correlation,negative correlation, not related, etc. Previous studies mostly focus on the traditional industry. However, in the era of knowledge economy, high-tech competition has become the focus of international attention. High-tech enterprises have gradually become the main force of modern economic growth and development of science and technology. The healthy development of the high-tech enterprises has become the key for the strategic adjustment of economic structure in China. In this context to explore ownership concentration's effects on business performance of high-tech listed companies can provide certain reference value for improving the ownership structure of high-tech enterprise and perfecting the corporate governance and improve business performance.Firstly, this paper generalizes the research achievements of the domestic and foreign scholars on the relationship between the ownership concentration and corporate performance. Secondly, this paper introduces the theory of life cycle.Based on the review and analysis of the related concepts and related theories of high-tech enterprise, it is concluded that how ownership concentration affects business performance in different life cycle stage of high-tech enterprise, and then put forward the research hypothesis. Then this article selects more than four hundred high-tech listed companies listed on the Shanghai and Shenzhen stock exchange before December 31, 2011 and determines their life cycle according to their cash flow characteristics of the three years from 2012 to 2014. Results show that more than eighty percent of the company is in growth period and mature period, so this article mainly study the growth and maturation of high-tech listed company. Thenaccording to the implementing rules for the central enterprise integrated performance evaluation, this article selects the enterprise profit ability, operation ability and debt paying ability to reflect the company's business performance and draws a comprehensive business performance score values by using factor analysis method.Finally, panel data model is set up, and descriptive statistical analysis, correlation analysis and regression analysis methods are used for the empirical analysis. The results of the study show that the growing high-tech listed company's equity concentration has a positive influence on business performance, and ownership concentration has a negative influence on business performance for high-tech listed companies. Then relevant countermeasures and suggestions are put forward according to research conclusion: maintaining reasonable equity concentration according to different life cycle stage; establishing and improving the system of ownership of human capital to promote the equity diversification; reducing the proportion of state-owned shares to promote the diversification of investment;optimizing the capital structure to reduce the financial risk, etc.