An Empirical Study On The Relationship Between Equity Concentration And Corporate Performance Of Private Companies In Shanghai And Shenzhen A-shares

Ownership structure is the foundation to effectively and efficiently manage companies; it functions vitally in perfecting the governance structure and enhancing the performance of companies; it means the ratios occupied by equities with different natures and how they interacts with each other among those equities within the total equity of joint-stock corporations. Ownership structure mainly includes meanings like equity components, equity concentration, and equity measurement. The relationship between equity concentration and corporate performance has always been a discussion and dispute in academia; professionals from both domestic and overseas had given it a tremendous amount of theoretical analysis and did tones of real-world experiments. Existing results gotten through those experiments were basically divided into two sides: first, there is no obvious connection between equity concentration and company's performance; second, there are obvious connections between equity concentration and company's performance; also, the result of researches toward private-operated listed companies about the connection between company's performance and equity concentration is also blur. Reasons for getting those different results can be classified as: first, scholars usually take different angles using calculation models to take regression analysis research, the company sample, time range, and outer environment picked by different researchers are not the same, therefore it's impossible for the result to have universality; second, because of the complication between the relationship of equity concentration and company performance, the restrictive reasons impacting the relationship are widely existed:like the stability of the field, competition among field products, and the forms of ownership, capital structure and growth performance of corporations.Enterprises as aggressions of resources, perfecting capital structure reasonably is the foundation of healthy development of enterprises, could increase the effectiveness of corporate capital and corporate performance. Capital structure means the distribution and ratio of different capitals in corporations. There are very little studies about capital structure and how it interacts with corporate performance, the ones does are mostly on invisible asset and fixed assets, and the result are different due to difference in research sample. Capital turnover and capital structure are not supposed to be ignored because the impact it has on efficiency of resource using; because of the difference in market environment and self-characteristics, one enterprise may has different capital structure than another. Then could the market factor and capital structure influence the relationship between equity concentration and company performance? Because of the fast development of private-owned listed companies in domestic capital market, and the obvious distance in company managing structures such as equity structure, stimulus constraint strategy, and capital structure with nation-owned listed companies. Therefore we must emphasis on private-owned listed companies'relationship between equity concentration and company performance in different fields of business, to help enterprises and financial and supervision departments take more effective ways to prompt private-owned listed corporations to take equity structures and capital structures that fits them more, in order to better managing companies.In the article, the method it took is the aggression of normative method and real world example method. First, take normative research, to describe the relating theoretical basis and relating articles about the mechanism of equity concentration toward performance, and from this base, suggesting the comprehensive research question that the article discusses about, which is, what are the relationships between equity concentration and corporate performance in different business fields?; is capital structure having any conditioning effect toward the relationship among those two? Lastly, using positivity research, by building theoretical model of "equity concentration and corporate performance", "ration of fixed assets, equity concentration and corporate performance", to profoundly analysis the inner-relationship among variables. By controlling the company scale, risk and time as variables, to study 851 A stock listed private corporation, taking conditioning effect model to testify if the ratio of fixed assets in private corporations is having conditioning effect on the relationship between equity concentration and corporate performance. Results proved that among domestic private listed companies:(1) the more equity concentrated to the top five stockholder, the better corporate performance there is, and the more percentage companies have in fixed assets, the more positive effects there are; (2) for private corporations in fields like information technology, wholesale-retail business which relies on all of the stockholder and manager and employees, in order to enhance the overall performance of enterprises, keeping a somewhat dispersive eauiry structure is important; (3) for construction field, there must be a higher equity concentration and a lower percentage of fixed asset to keep boost up corporate performance; (4) for field of social service, lower equity concentration and higher fixed asset ratio could help enhancement of corporate performance.While standing on existing theoretical researches, this article innovated three new points:first, it used capital optimization of resource allocation theory to perfect the conditioning effect of contingency theory toward cost of agency issue; second, reviewing studies in the past, this article first built the theoretical model among fixed asset percentage, equity concentration and corporate performance in the studying of the relationship between private-owned company's corporate equity structure and corporate performance, and made relating hypothesis; third, the article used A stock listed companies as foundation, abstracted the date of those companies in the past three years as researching sample, and did analysis to the whole market and each fields on the basis of previous study, in order to make the suggestion "fitting" more compelling when building equity structure and capital structure.