Analysis Of The Correlation Between Ownership Structures And Corporate Performance Of Listed Companies In China

The fundamental characteristic of listed companies differented from other companies is the circulation of their shares. The majority of the shares of listed companies in European and other developed countries are all outstanding shares,while there're a high percentage of non-tradable and tradable shares in the stock market of China. In Previous studies scholars concerned most about the shareholding structure, the impact of Government on the corporate governance and they focused in the state-owned shares and legal person shares, or the impact of the insiders'control on enterprise performance. But as the basic completion of reform of share structure in China, the whole market changes, the nature of ownership structure changes, and the state-owned shares and legal person shares will be fully into the flow of state. Therefore the current ownership structure of listed companies and corporate performance especially the outstanding shares needto be studied particularly,what's more, how to improve the ownership structure of listed companies on the basis of improved corporate performance and other issues should be concerned and researched. Based on the analysis on the basis of relevant theories,we had an analysis of systemly and deeply,to explore the internal impact of ownership structure on performance in China's listed companies,to improve the ownership structure and corporate governance mechanism, to provide favorable evidence which can enhance corporate effcience, and make a useful complement for this research.In this paper, we use the least squares regression analysis.The analysis is choose the date of more than 1,200 listed companies in China from 2001 to 2007,7,407 samples totally.The variables designed are fraction of shares owned by the state (FST), fraction of shares owned by legal persons (FLP), fraction of shares owned by the individual investors (FIN),and size. Tobin's Q and MBR are as a measure of corporate performance respectively,which is designed as dependent variable.In this way,we can estable the linear regression model.The regression result is that the correlation between outstanding shares and corporate performance is positive significantly. Finally, we give policy recommendations about the reform of ownership structure and corporate governance which should by optimizing the structure of listed companies to achieve diversified main so as to enhance the proportion of tradable shares, and make stocks full circulation.