Controlling Shareholder Proxy To The Company's Continued Growth

Ownership structure influences the effect of corporate governance, and the firm value further. Ownership structure is one of the most important issues of modern corporate governance. The relationship with ownership structure and firm value has been discussed and studied widely by all sectors. Ownership structure of Chinese listed companies have some unique characteristics, for instance highly concentrated ownership and a lot of non-tradable shares, so it seems that researches on this field pay more attention to ownership structure than corporate governance. Be a dominator of rare resources in China, listed companies are not only to make profit but also determine the sustainable growth ability of firms. When we analyze the ownership structure or corporate governance, we have to considerate how to use these to increase the firm value.LLSV Showed evidence that some extent ownership structure around the world is concentrated, therefore, the agent problem between controlling shareholder and minority shareholder has become the focus of researches. How to understand the actions of controlling shareholder and how this problem affects the value of firm? On the other hand, the characteristics and actions of controlling shareholder will affect the corporate governance mechanism to the firm value.My study aimed at the relation between controlling shareholder, corporate governance and firm value by using the agency behavior which is influencing by agency problem. This research intends to discuss, what the relation between the characteristics of controlling shareholders, including the percentage of shares, state own or non-state own, and the firm value is, what the relation between the influencing factors constructed in this research evaluates the actions of controlling shareholder in five levels: investment decision, financing policy, dividend policy, growth of revenue, and profitability, and the firm value. I try to connect the effect of internal governance, including the size of BOD, the percentage of independent directors, pluralistic directors from dominative shareholder, and the firm value. In this research, I used the Economic Value Added (EVA) and Tobin's Q as the firm value for sustainable growth. There are few manipulations in EVA than tranditional accounting index and it involves time value in calculating Tobin's Q.Empirically, taking 2185 observes of Chinese listed companies in Shanghai and Shenzhen Security Exchange Market as a sample, through making an empirical study on the relationship between ownership structure, corporate governance and firm value of listed companies in China, the thesis probes the following results: Firstly, the concentration ownership will increase the firm value, including Tobin's Q and EVA. Secondly, there is few influences between the controlling shareholder is state-own or not and sustainable growth of firm. Third, the improvement of corporate governance is good for reducing agent cost by using ROE as an index. Finally, it is significant that the agent problems affect Tobin's Q.The concentration of shares and the change of governance structure will make contribution to the sustainable growth of firm by reducing agent cost. But it cannot explain how the characteristics of shareholders and corporate governance factors to affect firm value. We need to integrate the different angle of view to enrich this area of researches.