Theoretic And Empirical Research On Ownership Structure And Corporate Performance Of Public Companies

This paper discusses the relationship between ownership structure and corporate performance of public companies which belongs to Shenzhen and Shanghai Stock Exchange of 2003 based on theoretial research and empirical research of home and abroad.This paper elaborates the ownership structure and corporate perfomance relations from two aspects: ownership concentration and constitution of ownership.We analyze the effect of ownership structure on corporate performance from the point of corporate governance using ROE,CROA and P/NA as dependent variables and ownership concentration as independent variables and adopting ASSET,DAR and GROW as contraling variables.Our empirical research result showes: (1) ownership concentration and corporate performance exist positive relationship.(2)corporate performance are negatively related to the scale of state-ownered stocks and the circulation shareholder ratio ;positively related to the legal shareholder ratio.Ownership moderate centralism make the function of corporate governance mechanism be more advantageous from the point of theories. It will be helpful to the company achievements maximization. But empirical research result actually has the certain difference. Constitution of ownership in our country at present mainly has the state-owned stock, the legal stock and the circulation stock. Indicated by empirical research that too dispersive ownership structure is an impordent factor of low corporate perfomance under unperfectly market mechanism and legal system at present of our country . But the state-owned stock, the legal stock in our country cannot circulate and the smallest share of circulation stock affect the promotion of corporate perfomance.The innovation of this paper are: (1)We use empirical research method and adopt many corporate performance variable and the ownership structure variable for the first time in empirical analysis in order to avoid various variables's inherent flaw.Furthermore,we introduce control variables. Through the massive data analysis and processing, We make the clear accurate explanation to present situation and development tendency of ownership structure and corporate perfomance of public companies in our country of 2003 year. (2) this paper proposes the countermeasure suggestion from two ways of optimizing ownership structure and enhancing corporate perfomance.we propose not only traditional plan of reducing the state-owned stock holds and legal shareholder's cultivation , but also some new measure: carring out stockoption system to optimize ownership structure and implementing management buy-outs and strengthening independent director system' supervising new plan to enhance corporate perfomance.The meaning of policy of our reseach is that the reform of governance stucture shouldn't imitate the mode of Amercian and Britain neglecting China's reality at present------emphasizing ownership decentralization excessively and reducing state-owneredstocks .Keeping proper ownership concentration and rational ownership structure is in favor of the long term development of public companies and increasing of the whole performance.