Research On Impact Of Ownership Structure On Corporate Value Of Domestic Listed Banks

With the continuous development of the theory of corporate governance，the relationshipbetween ownership structure and corporate value is becoming one of the hottest topics amongtheory circle home and abroad. The reason is that there is an important relation betweenownership structure and corporation performance. As a special industry which operates money,banking plays a vital role in sound economy development and stable finance for one country.However, this relationship in banking is barely researched to date. There is no consensusamong the current research results. At present, the listed banks of China have achievedsignificant improvement in international competitiveness and operation capability, but theirownership structure still exist many unreasonable flaws, which constrains the improvement oftheir corporate value and corporate value. Therefore, the research on relationship betweenownership structure and operating performance of listed banks in China has crucial theoreticaland practical significance.Compared with the traditional indicators of corporate value evaluation, EVA is not onlytaking account of the cost of debt ownership, but also concerns the cost of equity ownership.Therefore, it can reveal the true operating performance and corporate value of listedcompanies, which can help investors more directly judge whether the enterprise is creatingsubstantial value for shareholders or not. Firstly, the dissertation discusses the background,significance of the relationship between ownership structure and corporate value of listedbanks in China and the literature reviews both at home and abroad as well as its researchapproach. Secondly, the dissertation introduces the theoretical foundation of relationshipbetween ownership structure and corporate value, including principal-agent theory, insidercontrol theory, share balance theory and EVA theory. Then, based on the specificity of listedbanks, we analyze theoretically the relationship between their corporate value and ownershipstructure. Thirdly, ground of the first two chapters in this dissertation, we select the panel datafrom2007to2010of14listed banks to empirically analyze the status quo of ownershipstructure and corporate value by means of OLS linear regression.Through the empirical research, it is found that the relationship between corporate value and ratio of state-owned share is negative; relationship between corporate value and ratio ofcorporate-owned share is positive; relationship between corporate value and ratio ofcirculation share is insignificant; relationship between corporate value and share ratio of thefirst major shareholder is positive; relationship between corporate value and sum of the shareratio of the first5major shareholders is positive; relationship between corporate value and theratio of the second major shareholder’s share to the first major shareholder’s share isinsignificant; relationship between corporate value and the ratio of the sum from the secondmajor shareholder to the fifth shareholder to the first shareholder is positive. Research resultsoffer suggestions for listed banks to improve their corporate value so as to enhance theircompetitiveness by adjustment of ownership structure.