The Research On Ownership Structure And Performance For ST

Theoretical research and practice experience prove that the quality of listed company is the cornerstone of healthy development for stock market in a country. The scale of Chinese stock market has expanded rapidly during several decades of reforming, developing and innovating, its contribution is becoming more and more outstanding in the term of enterprise financing, restructuring, and optimize the industrial structure. Now, It has already been a indispensible part in the grown of Chinese economy. But today, the good listed companies and the bad listed companies are intermingled, and the phenomenon that part of the enterprises’ operation efficiency is poor is always been criticized by investors. According to the stock exchange rules that be implemented in1998,Shanghai and Shenzhen Stock Exchange carries out special treatment to the companies whose financial status or other status appear abnormal phenomenon on April22,1998.60listed companies were special treated by Shenzhen stock exchange, in which49companies’s ROE is-72.95%on average.36companies’s ROE is from0%to-500%.In the half year of2011,as many as137companies were special treated by Shanghai and Shenzhen stock Exchange, which accounted for3.8%of the total companies in the main board market. Due to poor performance and large squad, ST corporation has become remarkable and concerning listed group in China’s capital market. Arresting ST corporations going on widening volume and making ST corporations out of trouble is a problem urgently to be solved in the future development of the Chinese securities market. This paper takes ST corporation as research object, with the method of combining theoretical analysis and empirical analysis, analyses the reason of ST corporation’s poor performance, than proposes some countermeasures.This paper is based on research ideas, such as theory research, empirical testing, and countermeasure suggestions.Firstly, this paper sorts the research seriously and discuss the relevant basic theory from ownership, agency and other aspects, elaborates the relationship between ST companies’ ownership structure and firm performance in detail, which lays a good theoretical basis for the latter empirical analysis. After that, this paper analyses the current situation and existing problems of ST corporations, suggests that there are a lot of problems in ST corporations, such as equity concentration degree is high, the phenomenon of single stock dominance is obvious, stockholder ratio of senior is extremely low, and the balance mechanism of equity is poor, etc.And then, we samples the listed companies which are special treated for the first time in2011,uses the factor analysis to examine the ST companies. At the same time, the panel data model is also be used to research the relationship between ST companies’ownership structure.The result found that the proportion of first largest shareholder, ownership concentration degree, and the ratio of corporate shares have positive effects on its performance. the bigger the proportion of first largest shareholder and the corporate shares is, and the higher ownership concentration degree is, the better company performance is. but the ratio of state-owned stocks has negative effects on its performance, the higher the ratio of state-owned stocks is, the poorer company performance is. The equity balance index and the ratio of circulation shares with its performance can not get across statistical distinct test. but The coefficient of the equity balance index is positive, the coefficient of the ratio of circulation shares is negative, suggests that the two have some effects on ST corporation performance.Finally, in order to improve company performance, this paper put forward to proposals to optimize ST corporation equity structure. Including that optimize ownership concentration degree, cultivate corporate investment main body, enhance the ratio of circulation shares, solve the problem of the state-owner equity "personification" dummy, establish and improve the equity incentive mechanism, and improve the capital market seriously and perfectly.