Empirical Study On The Relationship Between Ownership Structure And Firm Performance

Ownership structure has a basic position in the entire corporate governance structure. the design of ownership structure is directly related to the specific allocation of corporate ownership and the control of assets, resulting in a greater difference in the form and effectiveness which shareholders exercise powers in, thus it may has a significant influence on corporate governance’s way and company performance. After being adjusted with a number of economic policies, the listed companies of our country have become more mature, the firm value has been increasing everyday. This paper elaborates the fundamental theory and the relevance of ownership structure and corporate performance using the sample date from Shanghai and Shenzhen Stock Exchange-listed companies.At first, the paper explains the basic concepts and theories of ownership structure, corporate governance and corporate performance, summarizes the impact of ownership structure on corporate performance related research theories, according to these theories put forward hypotheses, select variables,build the model, and selected938companies from Shanghai and Shenzhen Stock Exchange-listed companies as a sample. In this paper, there is an empirical analysis on the relationship between corporate governance and corporate performance from2007to2011with variety analysis methods.This paper based on the characteristics of ownership structure from the Three aspects of property of ownership, the concentration of ownership and top management shareholding, select the explanatory variable, the proportion of state-owned shares, the percentage of legal-person shares,the tradable shareholding,the proportion of the largest shareholder, The ratio of top ten shareholders and the ratio of Shareholding square sum et. As the explanatory variable, and select the total return on assets (ROA) and Tobin’s Q which according to the corporate performance as explained variable. The empirical study results indicated that, the management shareholding, the proportion of the largest shareholder and the ratio of top ten shareholders ownership have significant positive correlation with the corporate performance. the percentage of legal-person shares(LSP), The ratio of top ten shareholders and the proportion of the largest shareholder (CR10CR1), the proportion of top five shareholders square sum(H5), financial leverage (BSR), asset structure(FA) and corporate performance present significantly negative correlation. The proportion of state-owned shares, the proportion of tradable shares, the scale of company and corporate performance form different directions of correlations. In general, most of the research hypothesis which are proposed in this paper have been verified, and the hypothesis as a result of their differences with reasonable explanations. The paper made reasonable explanations for those results which have differences hypothesis.