An Empirical Research On Ownership Structure And Value For Family Business

Family business is one of the most popular kinds of enterprise forms in the world, it is considered to be biggest in quantities and complex in its internal structure among groups of contemporary enterprises as well. More than 40% of enterprises in top 500 of the world are family business, including Microsoft, Kodak, Ford and so on. In China, family business is a common form in enterprises. According to investigation, 75% of private enterprises are family business in mainland of China, the total value of top 15 accounts for 20% of GDP approximately.Since 1990s, Chinese family business has been growing up quickly, a group of excellent companies issue stocks in A Share Market publicly, which played an important role in the national economy and the market economy. In 2004, Small and Medium-sized Enterprises Board established, which provides a good platform for the further development of family business. From then on, it is focused by theoretical and practical researchers. The subjects of family business, such as corporate governance, financing method, ownership structure are researched by many scholars.In order to be better and stronger, family business must pay more attention to promoting enterprise value, which depends on the efficiency of corporate governance, its inner basis is ownership structure. Generally speaking, corporate governance depends on ownership structure, which determine configuration of enterprise ownership and operating mode of governance, then influence the efficiency of corporate governance. Therefore, special ownership structure of family business, influence corporate governance step by step , then finally determine the enterprise value.Consider for the fact that most family business are small & medium enterprises, the thesis will select data from SME Board in 2004,2005 and 2006, define equity constituent, ownership concentration and ownership control as variables of ownership structure, process an empirical research on ownership structure and value, which indicate as EVA return. The main conclusions are as follows: as far as equity constituent, proportion of legal person shares and company value present the positive related relation, proportion of circulating and company value present the negative related relation; as far as ownership concentration, there is the not-significant reverse U-style relationship between the proportion of the first largest shareholder and value, Herfindahl Index and company value present the negative related relation; Ownership control and company value present the negative related relation. Finally, according to empirical result, the article put forward some suggestions, in order to provide some guidance for the adjustment of family business corporate governance.