Empirical Research On Ownership Structure And Corporate Performance In Listed Companies Of Liaoning Province From The Endogenous Perspective

According to the modern theory of corporate governance, ownership structure isthe property rights foundation for corporate governance of listed companies.Ownership structure determines the control of the different stakeholders, to determinethe various stakeholders discourse and decision-making in the company’s internaldecision-making, and ultimately affect the company’s performance. In recent years,the accelerated pace of liberalization and integration of capital markets worldwide,prompting scholars to strengthen the company’s ownership structure, especiallyconcerned about the ultimate ownership structure of the problem.Corporate ownership of Chinese listed companies has been concerned by thescholars at home and abroad, especially since the2005share reform has been a hotspot theory and practice research. Liaoning Province is an important old industrialbase, due to historical reasons, such as the irrational factors of ownership structure oflisted companies in Liaoning Province, the weakness of ownership structure tooptimize the driving force, unsatisfactory operating performance and other issues hasbecome an obstacle to long-term economic problems of development in LiaoningProvince. So, how situation the ownership structure in Liaoning Province, if the stateis still the largest shareholder in listed company of Liaoning Province, to answer thesequestions must be listed on the shareholding structure of the company itself. Inaddition, what is the relationship between ownership structure and performance inLiaoning Province, what is the factors of ownership structure, how to build aneffective ownership structure in order to enhance the performance of listed companiesare the most urgent and serious problem.In this paper, listed companies of Liaoning Province in2004-2012as the researchsample, analyze the current situation of the shareholding structure of ownership underdifferent measurement methods in Liaoning Province, and relationship betweenultimate ownership structure and corporate performance from the perspective of therelationship. First, through direct ownership and ultimate ownership of the twomeasurement methods, analysis of the ownership structure in Liaoning Province, findthat no matter what measurement method is used, the ownership structure is relatively concentrated in Liaoning Province, the country as listed company largest shareholderholds a highest percentage. By comparing the two types of ownership, find the stateand natural person by ultimate ownership hiding behind corporations indirectlycontrols the listed company in Liaoning Province; the ultimate ownershipconcentration under more direct equity ownership. Secondly, using simultaneousequations and instrumental variable method to study the relationship between theultimate ownership structure of listed companies and performance in LiaoningProvince, find that the affecting of ultimate ownership structure on performance isU-shaped nonlinear relationship, performance inhibit the shareholding structure of thecompany significantly, and that this interaction between ownership structure andperformance exists intertemporal nature, ownership structure is endogenous; addition,the paper will be divided ultimate shareholder is the state, corporation and naturalpersons, state and natural persons as the major shareholder of the listed company’sperformance to be significantly lower than corporation as a listed company’s largestshareholder.This study opens up a new framework for the research of Liaoning Province anddomestic on structure and performance. Currently, the use of the ultimate ownershipin a particular province sample for the study is the first, and this paper analyzes thestatus quo by comparing the ownership structure in Liaoning Province under differentownership, consideration of the effects of endogenous and cross-shareholdingstructure to analyze the ownership structure and performance relationship, which is anew attempt in Liaoning Province as a sample study. Meanwhile, fusion of theinteraction and intertemporal of ultimate ownership and performance, provides astrong complement in this area.