The Empirical Analysis On Ownership Structure, Market Competition And Firm Performance

Inside and outside governance mechanism are the two important factors to effective governance. This paper points out that inside mechanism took its roles at an effective outside mechanism represent by competition. Ownership structure and competition are related to effective corporate governance. The paper points out and builds firm performance creative model, and points out that firm performance is the result of inside mechanism, outside mechanism and for-performance. This paper finds out that ownership structure influence to firm performance related to the competition degree of its trades through empirical analysis. (1) State share has negative influence to oligopoly market and has positive influence to monopoly and monopolistic competition market. (2) Public share has positive influence to monopoly market and has negative influence to oligopoly and monopolistic competition market. (3) Legal person share has negative influence to monopoly market and has some positive influence to oligopoly and monopolistic competition market. (4) Concentration ratio has positive influence to firm performance. (5) Good performance firms have characteristics of high state share proportion, low public share proportion, high concentration ratio and high degree of market competition. Summary, we point out that listed companies should chose ownership structure to its trade competition characteristic. We don't sustain the scatter ownership structure. At last, the paper gives some advices to improve corporate governance.