Ownership Structure Of Listed Companies In China And The Board Characteristics Affect The Relationship Between Empirical Research

This thesis analyzed the endogenous determinants and interrelationships among corporate ownership and board structure characteristics using a sample of 835 China listed firms, which went IPO before the end of 2000 and was still in the market in the end of 2005. Five characteristics were used to capture the monitoring ability to control agency problems——corporate governance mechanism. These characteristics are inside director's ownership, blockholder ownership, proportion of outside directors, board leadership structure and board size. A system of simultaneous equations was used to estimate the determinants of board and ownership characteristics by two-stage least squares regression. Moreover, the thesis analyzed whether the corporate governance mechanism affected firm's value.Empirical results indicate that corporate ownership and board structure are related, and the corporate ownership significantly influences on the corporate governance mechanism. The inside directors ownership is significantly positively related to tradable ownership and number of inside directors. The blockholder ownership is significantly negatively related to the tradable ownership, and significantly positively related to the inside directors ownership, state ownership and firm's size. The proportion of outside directors is significantly positively related to the firm's size, and significantly negatively related to the inside directors ownership, the state ownership and regulated firms. The status of the CEO also serves as the board chairman is significantly positively related to CEO tenure. The board size is significantly positively related to the blockholder ownership and the firm's size. The firm's value isn't significantly associated with the corporate governance mechanism.