Research On Ownership Structure And Corporate Performance Relation

Ownership structure is the structure of stockholders, including the types of stockholders and various shareholding proportions, the concentration degree of shares and the stability of stockholders. Ownership structure is the basic and important section of corporate governance. It has important influences on shareholder's power, structure of corporate board, takeover market. It also influences the corporate performance by means of governance mechanism such as incentive and supervises, exterior take-over and competition in agent right and so on. Up to now, there are no authoritative conclusions concerning the correlation between ownership structure and corporate performance in theoretical and empirical research. Because of special ownership structure, the correlation between them of Chinese listed companies is more complex and contrary to theoretical analysis and overseas empirical research. Based on the theories in existence and empirical research frameworks, this paper tries to check up the correlation between ownership structure and corporate performance for 541 listed companies in Shanghai Stock Exchange. The empirical research makes a few conclusions. Firstly, appropriate concentration in ownership structure is available to improve corporate governance and performance. Secondly, there is feebly negative relationship between ratio of ownership control and corporate performance. Ownership control is the important system to restrain the plunder of big stockholders and protecting middle-small investors' rights in the condition of ownership concentration, but it needs certain conditions to put into effect.According to these empirical conclusions, this paper puts forward some policy recommendations. Firstly, retain the concentration ratio of shares in some degree, and build such an ownership structure its shares holding comparatively by some legal stockholders can restrain the plunder of big stockholders and protect the middle-small shareholders' rights. Secondly, develop actively the institutional investors and induce them to participate in corporate governance. Finally, improve the statutes of protecting investors.