The Impact Of Ownership Concentration On Corporate Performance Under Different Regional Governance Environments

After the reform of full circulation of non-tradable shares,the company’s equity policy has become one of the important factors affecting the company’s performance.Different regions have different external governance environment,mainly reflected in the market competition and legal environment which affect the formulation of corporate equity policy.Therefore,it is of great significance for companies to formulate appropriate equity policies according to different regional governance environments to improve their performance in the wave of supply-side reform and break away from the illusion to the reality.The companies require more and more accuracy in the formulation of equity policy.Traditional estimation methods can not satisfy the precision requirement of policy-making because they judge the problem by a point rather than a distribution and are subject to sample information.Bayesian method can get the posterior distribution of parameters,and the least square estimation result is only a point on the posterior distribution.According to the posterior distribution characteristics,it can make accurate judgment to meet the needs of high precision.This paper takes the annual report data of 2 242 listed companies in Shanghai and Shenzhen stock markets in 2016,excluding financial companies,companies with net assets less than 1 per share and companies without Tobin Q as samples.This paper divides the regional governance environment into two aspects:legal system level and market competition.Tobin Q value is used to quantify the company performance and market index overall score is used to quantify the overall market level.Then the total score is divided into product market development index,government and market relationship index,market intermediary organization development and legal environment index.The effects of ownership concentration on company performance are investigated respectively.On the basis of Gibbs sampling method with Noninrmative prior distribution,the posterior distribution of parameters is obtained.The convergence test results show that the posterior distribution of each parameter converges.Through the characteristic Bayesian method of the posterior distribution,the following conclusions can be drawn:the influence of the concentration of equity on the company’s performance is significantly positive;the influence of the concentration of equity on the company’s performance in the eastern region is significantly lower than that in the western region is uncertain;the increase of the degree of marketization will significantly reduce the impact of the concentration of equity on the company’s performance is uncertain.Under the least square method,hypothesis one is significantly established,hypothesis two or three is not valid.Through the comprehensive analysis of the Bayesian estimation results and the least squares estimation results,it is found that the least squares estimation results are a point on the Bayesian posterior distribution and have one-sidedness.