Research On The Relationship Between Ownership Structure And Firm Value

After 1950's,the concept of company value enjoys popular. All activities of the company such as strategy, investment, financing and corporate governance are all around the value creation. Management based on company value creation has become a new enterprise mode of western business, which makes the company management into the time of based-on value management and objected-in value maximization. After the reform of the shareholder structure, China's capital markets overcome some defects of capital market, especially the pre-split share system defects in the Small Business Market. In the new circumstances,the conclusions about governance affects of company value also need to be a new verification.Based on ownership structure, with the core of company value, this paper combined ownership structure, capital structure and company value organically, followed the main line of"Ownership Structure - Capital Structure - Company Value", and studied the Small Business Board companies with significant features. The company value indicators included Tobin Q, a variety of accounting profit targets and EVA index. This paper analyzed the company value synthetically. First, it elaborated the concept of company value, compared and analyzed the measurement method of company value, and discussed the theory of the company value according to the latest research. Secondly, the paper analyzed theoretically on the impact of ownership structure and managerial ownership, corporate governance and capital structure to company value and made a descriptive analysis and a correlation analysis about the Small Business Board companies. The conclusions are as follows. The shareholding ratio of the largest shareholder, private sector and domestic institutional shareholders, the state-owned attribute of controlling stockholders and floating stock ratio are positively correlated with the asset-liability ratio; the shareholding ratio of state-owned institutional shareholders has a significant negative correlation with the asset-liability ratio, and managerial ownership shareholding ratio and corporate debt ratio is not relevant. Largest shareholding ratio,state-owned attribute of controlling stockholders, state-owned shareholding ratio,asset-liability ratio are negatively correlated with company value. Managerial ownership shareholding ratio,controlling shareholders of the private nature,legal nature,institutional ownership ratio and company size have beneficial effect on company value. The increase of proportion of outstanding shares has negative correlation with the improvement of corporate performance,but it solves the interest confrontation and conflict between primary market and secondary market,and has benefits on the long-term development of China's capital market. All of the variables, only the controlling shareholders of the private nature in the owner structure have a significant positive correlation with the EVA, and EVA alone has limit effect on the correlation between ownership structure and listed company value. Using Probit model with EVA as interpret variable, this paper made a conclusion that high concentration of obtained ownership was not conducive to company value increase, the controlling shareholder of the private and national corporation have a significant positive correlation to positive EVA, the nature of Controlling shareholders of the foreign legal person and executive nature had a significant negative correlation to positive EVA. Finally, this paper pointed out the limitation of this study and prospected the research.