The Empirical Analysis Of Equity Level, Equity Concentration And Corporation Performance

As a hot issue,the research of relationship between corporate performance and ownership structure has been concerned by the scholars at home and abroad.They discuss on the same issue based on their respective national conditions,and the empirical results about the problem has not obtained a consistent conclusion.Compared with full circulation of equity capital market in European and American,companies in China equity has been divided into two parts and they are non-tradable shares and tradable shares.After full circulation reform,the company's equity structure have changed because of the state-owned shares and legal person share current circulating,companies get an opportunity to enhance the level of corporate governance and performance after the full circulation reform.By the end of 2006,the 1124 companies have completed the reform,It indicates that China's capital market has gradually entered the era of full circulation.With the passage of time,the influence of the full circulation reform gradually revealed,And it has enough time span for us to analyze the relevant issues.and the research for the economic consequences of full circulation reform become necessary and feasible.In this paper,based on the perspective of equity structure,after the full circulation reform,The impact of ownership concentration to firm performance?The impact of corporate hierarchy to firm performance and the both effects the enterprise performance.To deepen our understanding of the economic consequences of the full circulation reform.This paper based on the perspective of ownership structure,after the reform of non tradable shares,the ownership concentration influence on enterprise performance level of equity impact on corporate performance and equity ownership concentration level,common on business performance were studied.To deepen our understanding of the economic consequences of the split share structure reform.Based on the above purpose,first of all,this paper at home and abroad are reviewed on the two dimensions of ownership concentration and corporate performance,equity level and enterprise performance and related literature review,combing the relationship between ownership concentration and corporate performance,the relationship between the level of equity and corporate performance.Secondly,this paper describes the main theory of incomplete contract theory,two power separation theory,principal-agent theory,corporate governance,and introduces the main theory of ownership structure on corporate performance,and the index of description.Finally,this paper based on the analysis of ownership structure and corporate performance theory,put forward the following hypothesis: the reform of non tradable shares and ownership concentration is negatively related,the reform of non tradable shares and equity levels negatively correlated,after the reform of non tradable shares to reduce the equity level of the enterprise performance with increased,after the reform of non tradable shares with enterprise performance the ownership concentration increased,and the concentration of equity ownership structure and corporate performance are negatively correlated.Based on the empirical analysis of the data of 2877 listed companies,the paper draws the following conclusions: first,there is a positive correlation between the split share structure reform and ownership level.Second,the split share structure reform has a negative correlation with ownership concentration.Third,the performance of the enterprise increases with the increase of the ownership level after the split share structure reform.Fourth,with the decrease of ownership concentration after the split share structure reform.Fifth,after the split share reform,corporate performance and equity level,ownership concentration is positively related,that in the equity level,ownership concentration effect on corporate performance under the condition that the degree of influence on the performance of enterprises is higher than the level of equity ownership concentration and the effects on corporate performance.Finally,this paper puts forward the policy recommendations: state-owned enterprises to build a reasonable level of ownership,non state owned enterprises to build a reasonable concentration of equity and China needs to strengthen the construction of the securities market system.