Ultimate Ownership Structure, Internal Corporate Governance And Firm Value

Ownership structure is the basic problem of corporate governance, which determines the control of the distribution among the shareholders, but also determines the Voice and decision-making power of shareholders, and ultimately will affect the company’s performance. LaPorta stand in the perspective of the ultimate ownership structure, looking for the ultimate controlling shareholder of listed companies through the method of retroacting equity control chain.As a result, many scholars have also stand in this perspective, researching the relationshinp of ultimate ownership structure and performance.In addition, the strengthening of company’s internal governance is the assurance of improving the company’s ability to create value and maximizing the returns of shareholder.Therefore, the paper selects manufacturing listed companies as samples,studing the relationshinp of ultimate ownership structure, the impact of internal corporate governance and the performance of the company.Meanwhile, due to the rapid economic development and positive transformation in our country, diverse levels of development, management system and other aspects cause ultimate ownership structure, internal corporate governance has its own characteristics in state and non-state nature of the company.Therefore, according to the nature of the ultimate controlling person.the sample was divided into two groups of state and non-state-owned research, the relationship between the ultimate ownership structure, internal corporate governance and corporate performance could be revealed more accurately.The main contents of this paper are:first chapter is an introduction. Research background, research methods are described, given the research framework of the article. The second chapter is a literature review. Reviewed and summarized the ultimate ownership structure, foreign internal corporate governance and research value of the company. The third chapter is related concepts and theory are reviewed. The ultimate structure, equity concept to explain and define the performance, and the separation of ownership theory, agency theory are reviewed. Chapter Four is the research of hypotheses and design. Explain the calculation method of variables and data selection,combination of theory and background,proposed hypothesis of relationship of ultimate ownership structure, corporate governance and corporate performance,and then design the corresponding empirical regression model. The fifth chapter is empirical. According to the nature of ultimate controller,the simple is divided into state-owned and non-state groups, using the method of descripting statistical analysis, multivaring regression model,searching the relationship between the ultimate ownership structure, internal corporate governance and corporate performance. The sixth chapter is the conclusion, proposing policy recommendations based on conclusions drawn from the analysis in this paper. The research shows that the performance of non-state-controlled liste companies in manufacturing significantly better than state-controlled listed companies. State-owned group, there was a significant negative correlation between cash flow rights and performance,control and corporate performance has inverted U-shaped relationship, the degree of separation right has a positive correlation between corporate performance;and the executive compensation and corporate performance has positive correlation; the proportion of managerial ownership, board size and corporate performance had no significant correlation. Non-state-owned group, cash flow right, control and corporate performance significantly positive correlation, the degree of separation right has negative correlation between corporate performance; executive compensation, managerial ownership and corporate performance significantly positive correlation,size of the board had no significant impact on company performance Meanwhile, the results of group study and overall study is different,so, it can accurately show the effect of the internal structure of the ownership structure and corporate governance on corporate performance.