Ownership Structure And Corporate Governance Research

The research on the ownership structure and corporate governance can be traced back to the Berle and Means(1932) times. However, it was not until the beginning of the 20th century, between the year 1970 and the year 1980, that the research on corporate governance issues began to truly rise. The systematic study on the Corporate value and ownership structure had begun from Jensen and Meckling(1976) times.The concern and research on corporate governance issues in China began in the mid-1990s. At present, a common conception on China's handling the businesses of public companies from the theoretical circle is: the ownership structure is unreasonable, corporate governance runs in low efficiency.Most of the scholars both from home and abroad take the company performance influenced by ownership structure as an entry point when doing research on the relationships between ownership structure and corporate governance. The basic theory is that ownership structure of corporate has a great impact on the model of governance as well as daily management, in this way it will affect company performance. Empirical Study results show that the ownership structure and corporate performance are relevant indeed. However, the reason that different countries have different situations, so does the differences in sample selection exist, has caused varied scholars have various interpretations on the relationship between ownership structure and corporate performance.Of this paper, the first chapter is a general overview on the research made by the scholars both home and abroad, setting this Paper's researching ideas, content and methods. In the second and third chapters, the ownership structure and corporate governance's basic theories were studied. The fifth chapter is a study on the two kinds of relatively representative ownership structure and corporate governance model: Ownership decentralized management of the external model - Britain and American corporate and ownership centralized management of the internal model - the German and Japanese corporate. Chapter V sums up the main issues existing in the governance of the public companies in China from both the internal and external governance mechanisms.On the basis of theory and practice, Chapter VI this paper carries out an empirical study on the ownership structure and corporate governance of China's high-growth small and medium-sized public companies. Empirical research has shown the status quo that China's public companies' ownership is overly centralized, and that the proportion of natural shares, unlimited conditional shares and capital business return on assets (CROA) are positive associated, while state-owned shares and legal person shares and main business assets rates are negative correlation. The Herfindahl Index H5 which reflects the proportion of the largest shareholder and the top five shareholders and capital business return on assets (CROA) are negative correlation while the Z index which reflects the degree of checks and balances of the largest shareholder and capital business return on assets (CROA)are in the inverted "S" shape relations. In addition, we have got curve regression model of the proportion of largest shareholder, Herfindahl Index, Z index and capital business return on assets (CROA).Finally, based on theory, practice and empirical research, this paper provides some policy recommendations on optimizing stock ownership structure, regulating the internal governance mechanisms, and improving external governance mechanisms.