The Influence Of Equity Concentration And Equity Check And Balance On Corporate Performance

This article uses 548 listed companies from Jiangsu,Zhejiang and Shanghai in 2013-2015 years as examples to explore the relationship between ownership structure and corporate performance.First,the cash flow portfolio method is used to divide the life cycle stages of listed companies,this paper analyzes the correlation between equity concentration,equity balance and corporate performance based on the enterprise life cycle;According to the different nature of shareholders,the effect of equity concentration on company performance is studied from the perspective of state-owned enterprises and non-state-owned enterprises.Considering the equity nature of the largest shareholder and the second largest shareholder to analyze the influence of equity checks and balances on company performance.The research findings:Firstly: Based on the enterprise life cycle perspective,there is a significant positive correlation between equity concentration in the growth period and the recession period of the company and the company's performance,and there is no significant effect in the mature stage;there is a significant positive correlation between the growth and maturity of the company and the company's performance.However,in the recession period,the company's performance is inhibited but not significant.Secondly: Based on differentiating the nature of equity,there is a positive correlation between equity concentration and corporate performance.The salience of state-owned enterprises is higher than that of non-state-owned enterprises.Equity checks and balances have significant differences in their effectiveness due to the different nature of the first and second largest shareholders.When the nature of the first and second largest shareholders is respectively state-owned and non-state-owned,the positive effect of shareholding balance on company performance is significant.When corresponding to non-state-owned and state-owned companies respectively,it is difficult for the shareholding balance to play an active role;When the same state is a state-owned property,the influence of shareholding checks and balances is positive and the effect is not significant;When the same is non-state-owned,equity checks and balances are beneficial to the improvement of company performance.The effect of checks and balances depends on the supervision investment of the second largest shareholder in the largest shareholder.Thirdly: There is no significant quadratic relationship between equity concentration,equity balance and corporate performance.Fourthly: Regression results concluded that the first big shareholders did not significantly affect corporate performance,It shows that the shareholding ratio of the first major shareholder has been reduced,which has improved the situation of the single largest shareholder in the listed company.