The Research On The Power Balance With Shareholder Structure And Enterprise Growth

The phenomenon that 'a single shareholder owning major shares of a firm' is ubiquity.Many researchers point out that the power balance with shareshouder structure is a better choice.Does there existing the power balance with shareshouder structure in Chinese listed companines?Has the power balance with shareshouder structure positive influences on enterprise growth?This paper tries to answer these questions.This paper chooses the A-share listed companines as samples for the period through 2001 to2005 and carries on the analysis which use cross empirical method. We divide the listedcompanines to three parts: 'the enterprise of a single shareholder owning major shares of a firm','the the enterprise of outside blockholders' and 'the common enterprise'. In the meantime, makea distinction between SGR＞0 and SGR＜0. By identifying the concept of power balance withshareshouder structure, this study investigates the situation of the power balance withshareshouder structure in A-share listed companies. Furthermore, this paper studies the effects ofpower balance with shareshouder structure on enterprise growth. Our study has findings below.First, there is a linear, rather than a nonlinear relationship between the power balance withshareshouder structure and enterprise growth.when SGR＜0, the power balance withshareshouder structure is generally associated with lower enterprise growth. Second, thestate-owned share for the biggest share of a firm has a bidirectional influence: SGR＞0, negative;SGR＜0, positive. Third, through independent-sample T test, we find that the SGR which isbetween 'the enterprise of a single shareholder owning major shares of a firm' and 'the theenterprise of outside blockholders' exist remarkably difference.The study makes clear that there exists the power balance with shareshouder structure inChinese A-share listed companies. Being agent cost, supervise cost and incentive effect, thepower balance with shareshouder structure has negative influences on enterprise growth.