A Study On The Impact Of Ownership Structure On Enterprise Performance

Ever since the birth of modern enterprises,the separation of ownership and management has been one of the core issues talked by academics and businessmen.There are both advantages and disadvantages caused by two-right separation.On the one hand,the two-right separation may combine the owners' funds and the managers' abilities so that enterprises operate better;On the other hand,it leads to the first principal-agent problem,which will reduce the operation efficiency of enterprises.Other than the separation of ownership and management,the birth of modern enterprises is accompanied by the decentralization of ownership.On the one hand,funds raised by the decentralization of ownership could cover the funding gap caused by the deepening of social production and increased market competition.On the other hand,the second principal-agent problem brought by the decentralization of ownership will damage enterprise performance.Not only do modern enterprises bring the combination of capital and talent,but modern enterprises also bring two types of principal-agent problems.Although the two types of principal-agent problems which are concomitant with the combination of capital and talent could not be completely avoided.Enterprises can balance the pros and cons in order to max enterprise value.Although the two types of principal-agent problems cannot be completely eradicated,steps could be taken to limit it.For enterprises,the most important step is to set up sound interior governance mechanisms.Ownership structure is the basis of corporate governance mechanisms.Inner can restrict two types of principal-agent problems.Two types of principal-agent problems have impact on enterprise performance.This is a full path that the ownership structure influences enterprise performance.Following this path,the academic circles are also going deeply into discussion of the relationship between ownership structure and enterprise performance.Owning to different methods,background,etc,this is not an completely accordant conclusion about the impact of ownership concentration and managerial ownership impact on enterprise performance.But on the relationship between institutional ownership and enterprise performance,scholars have reached a consensus.Other than ownership structure,debt levels and other factors also have impact on enterprise performance.In the previous studies,all scholars just saw debt levels as a controlled variable.They did not take into account debt levels' control response on the relationship between ownership structure and enterprise performance.According to the free cash flow hypothesis theory,bankruptcy cost theory and stakeholder theory,debt levels can impact enterprise performance by restricting two types of principal-agent problems.Leaving debt levels out of account,the conclusions about ownership structure's impact on enterprise performance will not be close to reality.In order to find out the real relationship between ownership structure and enterprise performance,this paper will study the impact of ownership structure on enterprise performance from the perspective of debt levels.This whole paper is divided into six chapters.The first chapter is about the introductions of research background and meanings,research methods and contents,innovation points and insufficient of this paper.The second chapter is the literature review part.This part will review related researches both at home and abroad.Then a summary will be made.The third chapter is about the theory basis.This part will explain the theory basis of this paper's empirical study.The fourth chapter is to design a suitable model.Accord to the features of data and predecessors' empirical models,the most suitable model for this paper will be designed and selected in this part.And the hypothesis of this paper will be put forward.The fifth chapter is the empirical part.This part will verify the hypothesis empirically.The sixth chapter is about the conclusions and recommendations.This part will make some conclusions by analyzing the result of empirical studies and give five advices.By analyzing the short panel of 1649 listed companies in Shanghai and Shenzhen stock markets from 2013 to 2015,it leads to three conclusions:(1)There is negative correlation between ownership concentration and enterprise performance,and negative effects reduce as debt levels increase;(2)There is negative correlation between managerial ownership and enterprise performance,and negative effects reduce as debt levels increase;(3)Institutional ownership and enterprise performance are related positively,and positive effects reduce as debt levels increase.