Ownership Concentration Power Balance With Shareholder Structure And Sustainable Growth Of Listed Companies:

Finance scientist Robert Higgins pointed out that the sustainable growth ratio is the maximum sales ratio that if there is no depletion of financial resource, the companies can achieve the ratio .If above this ratio, companies will face financial resource constraint, financial crisis and bankruptcy in the long run. However, if under this ratio, companies are in the condition that the capital is not used completely. And companies will be sifted out in the fierce competition in the long run. Therefore, to maintain a healthy, long-term survival and development, the listed companies should make their actual growth ratio to match the sustainable growth .This match does not need the actual growth ratio and the sustainable growth ratio to remain same. Of course, the closer the two ratios the more the companies can achieve survival and sustainable development.According to the need of study, the numbers of samples and the timeliness, this paper selected the A-share listed companies as the research samples in Shanghai Stock Exchange and Shenzhen Stock Exchange Centers between 2004 and 2008, of which the first and second largest shareholders are non-state shareholders. In the study, this paper uses some methods respectively to study the relationship among ownership concentration, power balance with shareholder structure and the sustainable growth of listed companies. The empirical results show that there is a positive correlation between ownership concentration and the deviation degree of sustainable growth of listed companies; the higher the concentration of ownership of listed companies the more inclined to deviate from the sustainable growth ratio. When the entire samples were returned, there is a negative correlation between power balance with shareholder structure and deviation degree of sustainable growth, but not significant. There is a negative relationship between power balance with shareholder structure and deviation degree of sustainable growth of listed companies in the condition of share ratio of the largest shareholder less than 50%.Therefore, this article believe that the positive role of power balance with shareholder structure to the sustainable growth of listed companies is conditioned by the share ratio of the largest shareholder, when the share ratio of the largest shareholder more than 50% the function is failure.