Foreign Shareholders And The Performance For Chinese Listed Companies

China wouldn't have experienced such a fast and sustainable growth without the Policy of Reform and Opening up in the past 30 years. More and more listed companies in Chinese security exchange have foreign shareholders, whose appearance has promoted the change in the structure of corporate governance of the listed companies and influenced their performance.With the development of China's economy, the treatments that the foreign investors were enjoying are transferring from favorable treatments to national ones. In the adjustment of the investment promotion policies, the government must know the motivation and enthusiasm of foreign shareholders and listed companies which have got foreign shareholders, and the effect of different forms of foreign capital invested into listed companies with different essential controller.This article draws following conclusions through the theoretical analysis and empirical study:The performance of listed companies with foreign shareholders is negatively correlated with the fraction of equity owned by foreigners, and the absolute value of the coefficient for firms controlled by non-state-owned legal person is bigger than for those controlled by the government, state-owned enterprises and other state-owned institutions. Listed companies with foreign institutional investors perform better. Foreign non-institutional shareholders that delegating directors or executives to the listed companies could bring the China's companies a little better performance.