Research On The Relationship Between Ownership Structure And Corporate Performance

The relationship between stock ownership structure and corporate performance of listed companies has been paid much attention by scholars at home and abroad.However,a unified conclusion has not been formed yet.In addition,the three plenary session of the eighteen session proposed that we should develop the mixed ownership economy of cross shareholding and mutual integration of state-owned capital and collective capital actively.It is worth discussing whether the introduction of these policies influences the relationship between ownership structure and corporate performance of Listed Companies in China.This paper is based on the principal-agent theory and the corporate governance theory.Selecting 11 financial indicators to construct the performance evaluation system of listed companies.We use the factor analysis to calculate the overall score to measure company performance.The study from the two parties of the shareholding ratio and the equity property1106 listed companies of A shares of two cities in Shanghai and Shenzhen were selected for2012-2016 year.The results of the study show that:(1)There is an inverse“U”relationship between ownership concentration and company performance.Corporate performance improves with the increase of ownership concentration.But when ownership is too concentrated,large shareholders will encroach on the interests of minority shareholders,resulting in a decline in corporate performance;(2)There is a positive correlation between the degree of equity balance and performance.Improving the balance of equity is beneficial to the improvement of the company's performance;(3)The respect of equity property,with the increase in the shareholding ratio of the company management,it is closer to the interests of the shareholders,which is in favor of the reducing of the agency costs;improving the performance of the company;(4)The differences of the nature of the first major shareholders have the different impact on company performance.The shareholding ratio of the first large shareholder has a negative impact on the performance of the company,which weakening the supervision effect on the performance of the company's performance by the proportion of the first large shareholders.The proportion of the first large shareholders of the private property ispositively related to the performance of the company.The proportion of the first large shareholders of foreign capital has a positive impact on the performance of the company,which is not significant.The reason is that compared with the state owned enterprises,the number of foreign shareholders is less,the positive influence can not be fully reflected;(5)By defining the variables of equity property balance,the results show that when the first major shareholders of a listed company are state owned,through the introduction of foreign capital and non-state ownership of private equity.In order to improve the performance of the company,the balance mechanism between different attributes of ownership is formed.On the basis of theoretical analysis and empirical conclusions,this article puts forward some suggestions: maintaining a moderate degree of ownership concentration,raising the proportion of managerial ownership and allocating the non-state capital reasonably.The innovation of this article is from the stock ownership and equity property two aspects to study the impact of the first largest shareholder to the company's performance.Besides,combining the shareholder ratio with equity property by defining the index of balance of equity property,in order to have a more comprehensive measure of the impact of the ownership structure on the performance of the company.