An Empirical Analysis Of The Relationship Between Ownership Structure And Corporate Performance Of Bio-Pharmaceutical Industry Listed Companies

Ownership structure is the interior structure of corporate owners, which determines the corporate governance and the character of Principal-Agent between owners and operators, and the efficiency of corporate governance is embodied by the corporate performance. As an accepted industry, Bio-Pharmaceutical industry has a significant role in the system of industry and economic growth in every country. What's more, with the economic globalization and national economy development, Bio-Pharmaceutical industry has become the fastest industry in our country. But in recent years, its performance has been falling steadily, so it's vital to investors to understand in correct way of knowing the corporation performance. In this paper, I choose 66 eligible companies about Chinese Bio-Pharmaceutical enterprises in Shanghai and Shenzhen Stock Exchanges in year 2006 being used as sample, empirical researches on the relationship between ownership structure and a company's performance are done, the relations between the two are examined, and proposals on improving ownership structure are explored. The data of annual report that the listed companies announced are the main source of data that this paper carries on the empirical research.This study has immediate significance for the listed companies to draw out development strategies, optimize the equity structure, raise corporate performance, and to intensify the core competitive mess. It provides the theoretical basis for the governmental administrations to and adjusts policies in time and for the investors to decide the investing direction. Meantime, this study can also accelerate the reform of state-owned enterprises and establishment of modern enterprise system.This study divides into six parts: the first part is the introduction part. This part has outlined the paper research background and significance, the domestic and foreign documents summary about ownership structure and the company performance research, and introduces this article writing mentality, uses research technique, framework of paper as well as innovation points. The second part analysis the theoretical on ownership structure and corporate performance in Chinese Bio-Pharmaceutical listed companies. The third part is the paper core part-empirical analysis part. First, I propose several researches hypothcsizc, choose samples and variable and indexes about Bio-Pharmaceutical industry listed companies. Second, according to the present situation of ownership structure and corporate performance in Chinese Bio-Pharmaceutical industry listed companies, I construct a formula, and it has outlined the present situation using the descriptive statistical method about Chinese Bio-Pharmaceutical listed companies' ownership structure characteristic and the company performance, and analyzes the listed companies' ownership structure towards corporate performance. Then, according to theory foundation, constructs the relational model about ownership structure and corporate performance on the regression analysis, and analyses empirical results. The fourth part is a conclusion part of this study. The fifth part is suggestion, from two aspects: restructure ownership structure and external environment construction constructing. The sixth part is summary part and the further study about this article.After the actual data analysis, this article discovered that neither the proportion of state owned shares nor the proportion of fictitious person shares has significant effects on the corporate performance, but they have nonlinear relationship. The proportion of the circulating shares has a significant negative influence on the corporate performance. The results indicate that neither the onion of state shares nor the proportion of fictitious person shares have significant effects owned on the corporate performance. It also discovered that the largest shareholder has no significant effects on the corporate performance, but the five largest shareholders has a significant effects on the corporate performance.