Correlation Between Ownership Structure And Corporate Financial Performance Studies

Manufacturing can directly reflect the productivity level of of a country,which occupies a pivotal position in the national economy.As a manufacturing power,the healthy development of manufacturing industry is an important guarantee for China's rapid growing economy.And among them,as the typical representative and an important part,automobile industry has become one of the pillar industries,and plays an increasingly important role in China's national economy.Throughout the current development of the automotive industry,as the representative of the developed countries,Germany,the United States and Japan are still world leaders.China's auto industry sales grow faster,but profitability is still lacking compared with the developed countries.In the aspect of Ownership structure,China has a big difference from developed countries,where theirs are more dispersed,while ours is more concentrated.So the author believes that the ownership structure may affect the company's profitability.For the automotive industry companies,there are many factors which influence the financial performance.This paper mainly elaborates from the perspective of the relationship between ownership structure and corporate financial performance.Ownership structure includes equity concentration,the proportion of the largest shareholder holdings,the proportion of the top three shareholders of institutional investors,The proportion of the largest shareholder of the institutional investors,the proportion of the largest shareholder of the mutual fund,the sum of the shareholding of the top three shareholders in the mutual fund.Financial performance mainly explore from the solvency,operational capacity and profitability.Whether the relationship between ownership structure and corporate financial performance affect the future development of the enterprise,is the major issue that listed companies have to consider.And at the same time,the company's financial performance is an evaluation for the development of the company's ability.Therefore,whether the ownership structure is related to the financial performance of the company,what kind of ownership structure is most suitable for the development of the company will become a urgent problem to solve for the current listed companies.Through the analysis of the ownership structure data and corporate financial performance data of 33 automobile industry companies in?Fortune 500 enterprises?,Appling spss18 software for data processing,concluded that the financial performance of the company has a negative correlation with the company's equity concentration and the proportion of the company's largest shareholder,and share a negative correlation with the proportion of the largest share holder of the institutional investors and the proportion of the top three institutional investors.And has no significant correlation with the shareholding ratio of the largest and the top three shareholders of mutual fund investors.