Study On The Correlation Between The Intensive Degree Of Share Ownership & Stock Proportion Restriction And Firm Performance In Chinese Listed Companies

China's capital market is characterized by emerging and transition. Restricted by various conditions, the original system design displayed a lot if defects. In the development of the market economy, we need to improve the place. Before the reform of the segmentation of stocks , dominance by the lion's share, segmentation of stocks, the same stock share have different rights has been considered to be criticism of listed companies and the securities markets. In the year two thousand and five, May the first the reform of the segmentation of stocks has started pilot work, after one year's working and checking. The reform has achieved initial success, beginning in the direction toward the healthy development of standardization. From period of the segmentation of stocks to after periods: the state-owned shares and legal person shares started to trade in the market; tradable shares and non-tradable shares to be considered to have the same rights, the same price with same shares. However, within the choice of ownership structure, we should pay more attention to promote the shareholder structure of listed companies which can raise the level of efficiency. To research firm performance level reached the required level it is necessary to study weather the company's management structure is reasonable, to research weather the company's management structure is reasonable, it must solve the two questions about the success or failure of companies . One question is: guarantee investors (shareholders) received in the investment and co-ordinate the relationship of shareholders and corporate relations. In the case of separation of the ownership and management rights, if the equity centralized, the major shareholders against the interests of small shareholders; If shares Scattered, the shareholders may lose control over it. Because of modern corporate governance issues rooted in the separation of the two companies and two from of the right degree, which generally directly reflected shareholding structure, shareholding structure of corporate governance should not only reflect the basic content and fundamental nature of the content, but also served as a major corporate governance mechanism. Therefore, above the corporate governance mechanism, intensive degree of share ownership become the first to be concerned and study .It is a real measure of the shareholding structure factors quantitative indicators. The second question is: The coordination between enterprises in the interests of the major shareholders. The concept of Stock proportion restriction and application of the academic community have begun to be concerned in the last few years of China. The study on "the stock proportion restriction" of the shareholder structure rising, and the research focus on: What's the situation of the stock proportion restriction in our listed companies? Can the share of the shares of stock proportion restriction have more value to enterprise value than the one-owner share structure? The result Among the major shareholders who fight for rights is: On one hand, Stock proportion restriction decrease the possibility of the investment which make no value intensive degree of share ownership is conducive to the protection of small investors; on the other hand, can be allowed to focus on equity investment in the project which may be lose because the major shareholders or asymmetry of information between the time delay that reduce the scale of the efficient use of resources. Integrated impacts of two hands, we know: the relative concentration of shareholding, the establishment of the equity shareholding structure will be beneficial to the company's operating performance.