Empirical Research On The Impact Of Equity Structure Of Public Companies Asset Quality

With the development of China’s securities market, many manufacturing public companies has been growing rapidly. Overall, China’s manufacturing industry public companies are still using high input as the main way to promote the development of enterprises, the majority of enterprises to expand the size of the company means are still to increase investment, paying no attention to the operation and management of the investment assets. Asset quality is a manifestation of the management quality of the Company, as well as the basis of profits and growth. Shareholding structure of listed companies, as the most important part of corporate governance, affects enterprise resource integration and configuration, and thus the asset quality of the good or bad.The paper selected manufacturing listed companies in the machinery, equipment, instrumentation industry class in Shanghai and Shenzhen A-share listed companies as research subjects, using factor analysis to establish evaluation index system for the manufacturing assets of listed companies, on the basis of research from2009-2011valid sample data885,approximately295companies3-year panel data, I built up multiple regression model, and then make a thorough empirical analysis on the relationship between shareholding structure and the asset quality. The results are as following:①factors that affecting the quality of the manufacturing assets of listed companies are asset turnover, profitability, the using situation of fixed assets as well as the effectiveness of assets. In the composite index of the quality of assets, asset turnover and profitability contributed significantly to the asset quality indicators. From the asset quality indicators, most manufacturing assets quality of listed companies performed well. Viewing from the distribution condition of asset quality second-level indicators, asset turnover performed poorer, while profitability performed better. It indicates higher core profit margins and return on assets and return on net assets. However,each asset turnover operational capacity needs to be improved.②multiple regression results demonstrates that,after the controlling of the company’s size, capital structure and company growth, there are a significant positive correlation between ownership concentration and asset quality Composite Index; the ownership concentration and profitability factor, factors and the effectiveness of fixed assets factors were significantly positively correlated, but negatively correlated with the turnover factor. Option property and asset quality negatively correlated; equity property and asset quality index turnover factor and fixed asset factor positively correlated, but negatively correlated with the profitability factor and effectiveness factor; without any explicit relationship between equity balance degree and quality of company assets.Innovation points:①In this paper, I used the characteristics of the asset quality as the main line to select evaluation asset quality indicators, building enterprise asset quality index evaluation system.②Based on the asset quality evaluation system to analyze and predict the shareholding structure influence on the asset quality, and verify the relationship between ownership structure and asset quality. This paper not only enriched the research on assets quality and equity structure, meanwhile, I hope to attract the attention and study from both practice and academic viewpoint.