Empirical Research Of Stock Stimulus And Company Performance Of Listed Companies

The characteristic of current company governance is the separation of ownership and management That brings out agency problem. After years of research, western experts figured out that Stockholder’s Rights Driver policy can lower the agency cost, and improve operating efficiency of the company, what’s more, retain talents for company, perfect governance structure and stimulus mechanism. For the past century, Stockholder’s Rights Driver had been widely executed in western countries and proved successfully. In China, Stockholder’s Rights Driver policy was introduced in1990s, but it was not widely adopted since the restriction of state policy and laws. However, more and more listed companies adopted Stockholder’s Rights Driver policy to its managers after stock ownership separation revolution. In this way, the conflict between share owners and managers and short sighted actions can be reduced, force them to focus on company’s long-run benefit. Thus, improve Stockholder’s Rights Driver effect and perfect Stockholder’s Rights Driver policy would bring back huge positive effect.Based on the special political and economical background, this paper adopts normal and empirical analysis to analyze quantitatively; also, this paper combines agency theory, human capital theory and residual ownership theory. This paper picks A share data between2007to2010, uses SPSS software to test the relationship of Stockholder’s Rights Driver and company performance. Besides that, this paper separates companies as state owned and privately owned.This paper has five parts:the first part is introduction, which briefly presents the background, target and result; the second part is article statement, that includes some Stockholder’s Rights Driver theories and references; the third part is the theoretical analysis of Stockholder’s Rights Driver and company performance; the forth part is empirical analysis between Stockholder’s Rights Driver and company performance; the fifth part is results and suggestions.The result shows that:Stockholder’s Rights Driver has positive effect to company performance, and this effect has relationship with capital structure; compared to state owned companies, privately owned companies have more significant effect under Stockholder’s Rights Driver. Therefore, this paper suggests popularization of Stockholder’s Rights Driver, perfect capital structure and improves governance of state owned companies.