Research On The Impact Of Non-Tradable Shares Reform On Ownership Structure And Corporate Performance

The split share structure problem is a special problem that has formed during the transition of our economic system and has caused the disconnect between the rapid economic development and the capital market in our country.It is generally considered as the biggest obstacle to the development of the stock market.Therefore,the split share structure reform must be adopted to eliminate the differences in equity liquidity.Today,the majority of listed companies have achieved full circulation of shares.The development of capital markets has also been gradually stabilized in the process of change.The basic completion of the non-tradable shares reform and the profound changes in the rules governing the operation of the capital market show that securities market has stepped into "Post-Non-Tradable Share Period".New behavioral trends of the shareholders emerge.Then does the reform have changed the original equity characteristics of listed companies? Does the impact of ownership structure on the corporate performance of listed companies have changed after the reform?Whether the reform of the shareholding has achieved its policy objectives over time?In order to provide reference and suggestions to build a reasonable ownership structure and ensure the healthy and long-term development of the capital market in the future.This article,starting with the ownership structure,investigates the actual effect and the market response of non-tradable shares reform by comparing the changes of the impact of ownership structure on the corporate performance before and after the reform.Based on the previous studies,this article analyzes the impact of non-tradable shares reform over time with the methodology research and the approaches exploration.It selects listed companies,which have carried out the non-tradable share reform until the end of 2006,as the research sample.With the sample companies' data in 2004 as the control group before the reform,the data in 2007,2012 and 2017 were collected respectively to represent the changes of market characteristics after the reform.Then it makes regression analysis to the sample data using SPSS 20.0statistical software.The major research conclusions are as follows:The ownership structure of listed companies in China obviously changed after the reform.The ownership concentration decreased significantly,that means thephenomenon of "single domination" was improved.The proportion of state-owned enterprises showed decreasing trend.With the non-tradable shares reform,the proportion of circulation stock eventually reaching a balance of nearly 100%.Ownership structure affects corporate performance through the behavior of major shareholders and corporate governance.However,the split share structure reform only restores the rules of the stock market.It does not fundamentally touch on the governance problems within the company.The impact of ownership structure on company performance has not changed substantively.After the reform,the positive influence of ownership concentration began to weaken.The effects of equity balance are "short-lived".It is still difficult to form checks and balances against major shareholders.The favorable leading role of policy has not been brought into full play.Therefore,we need not only to think about how to build a reasonable ownership structure within the company to improve company performance,but also to improve the capital market from the external environment when the opportunities and challenges coexist after the reform.The contribution of this paper lies on two aspects.First,it considers the incompleteness of the reform implementation.By extending the observation period of the policy effect of the reform and taking multiple tests to eliminate errors,the empirical result can more truly reflect the full circulation market changes.Second,it considers the randomness and incompleteness of the sample data.It chooses the weighted average of the market index Tobin's Q and the reporting index ROE to measure corporate performance,which enhances the accuracy of the model.