Research On Relationship Between The Ownership Structure And Corporate Performance Of Listed Manufacturing Company

As the analysis of property rights to the micro-economic operations, the analysis of the equityfirm is also the base of the corporate governance structure, corporate governance mechanisms mustbe formed in the conditions of some kind of ownership structure, and different ownership structurewill bring about by different companies efficiency, and the corporate governance efficiency finallydecide the level of corporate performance. Empirical research can help enterprises to improvecorporate performance by optimizing the ownership structure. Because of historical reasons, China’sownership structure in terms of equity nature and ownership concentration still have a big gapcompare with the international developed countries.The complex nature of the equity, overlyconcentrated equity shareholders and the weak balances are still the three major challenges,and alsothe three major problems to be solved urgently of listed companies in China.From the listed companies’ published interim report untill June30,2011, there are totally2013listed companies in China’s Shanghai and Shenzhen Stock Exchange. There are63companieswhose largest shareholder holding more than70%of the whole equity, and183companies exceed60%in that index, and808companies exceed40%accounting for40.14%of the total number oflisted companies;the average holding percent of the second to fifth largest shareholder is16.75%,and there are1312companies in the total2013companies are less than20%in that index,accounting for the ratio of65.18%.and there are still737companies ‘second to fifth largestshareholding ratio are less than10%, accounting for36.6%of all listed companies; the sixth to thetenth largest shareholding ratio is excessively more lower, and the average only4.26%,and upto1844companies’ratio are less than10%, accounting for91.6%. Over the above data,it showsthat the ownership structure of listed companies in China is very uneven, and equity are mostlyconcentrated in the hands of minority shareholders, other shareholders are very weak checks andbalances on whether the top five shareholders or the largest shareholder. This situation provides angood opportunity for the largest shareholder to seize the interests of minority shareholders by thecontroling advantages, This acts of hollowing out resources is of great harm to the steadydevelopment of China’s listed companies and securities markets, On the one hand,it is notconducive to generate real value companies for the market to do long-term investment; on the otherhand, this acts will contributeto the stock market wind of speculation, insider trading, which willeventually lead to stock market volatility. In this article,the author choose the558Listed Manufacturing Companies from2007to2011,in China’s Shanghai and Shenzhen stock market as the reaserch object, including30of theelectronics industry,35of the textiles, clothing, fur industry,158of the machinery, equipment,instrumentation industry,80of the metal and non-metal industry,4of the wood, furnitureindustry,102of the petroleum, chemical, plastic, plastic industry,47of the food and beverageindustry,70of the pharmaceutical,biological products industry,18of the paper and printingindustry as well as11of the other manufacturing industry. In this paper, the author demonstrate thecorrelation between manufacturing ownership structure and corporate performance throughempirical analysis. Firstly, the author do the overall sample descriptive statistical analysis bytime-series, and then,do the descriptive statistical analysis in accordance with the manufacturingsub-categories indursty, and finally do multiple regression analysis of the overall sample.And at lastconcluded that the specific regression model. This article do study strictly by the steps of theoreticalanalysis, empirical testing and policy recommendations, and ultimately draw relevant conclusions,with a view to provide a reference for listed companies optimization of equity.