An Empirical Study On The Performance Impact Of The Family Business As The Largest Shareholder

Family enterprises have played an important role in Chinese national economy. In recent years, the number of Chinese family enterprises listed in rapid growth, however, due to the short time of the family enterprises' development in China, and their information is still not disclosed completely, as well as their special organization form, the Corporate Governance of the family business is in a mess now. Therefore, it takes great value to research the governance structure of the family business from the angel of the ownership concentration in both the theory and practice.This paper aims to study the performance impact of the family business as the largest shareholder. It's main to study the performance of the new shares listing at the initial stage from the angel of the ownership concentration. It will help to excavate the deep reasons of the corporate development history, learn more from the experience, improve the policy environment, find a more efficient governance mode, and seek for the family enterprise's faster development; finally, it can give some reference to the corporate governance from the angel of the ownership concentration and family feature.At first, this paper has a retrospect of the home and abroad papers. Then it reviews the development history of the family business, and also summarizes the governance structure trait, main approach and research status. The remaining paper is on their basis.Then, this paper takes all private companies listed in Shanghai and Shenzhen stock exchange from 2005 to 2008 as samples. based in theoretical Knowledge, analyzed the relation between ownership structure and company's operating performance with standardized research methods. And then this paper analyzed the effect of company's operating performance for the largest shareholder's holding proportion with the following two indicators:(1)The Tobin Q value representing the performance of company, verifying the relationship by regression analysis. (2) The G index that could reflect the performance of company is composited by the profitability, growth and stability and the operational efficiency. Other more, exploring the relationship between the performances of company with the first controlling shareholders by regression analysis method.At last, the author summarizes all the research conclusion that there exists the positive relation between family business as the first largest shareholder and company performance. Besides, author also analyzed the other factors which affect the performance of company in company administration. And based on it, supply some suggestion which benefit improve family enterprise management.