Research On The Relationship Between Ownership Concentration And Performance Of Listed CPMPA Nies

At the beginning of reform and opening up, in order to adapt to the economicdevelopment, China implemented Share Segregation Reform, Share SegregationReform played a positive role at that historical period, but it led to the proportion ofstate-owned shares are in the majority of listed companies, the proportion of corporateshares and public shares too low, This limited development of the subsequenteconomic sustainable. Therefore, China was launched in2005the share reform in2005and gradually realize of the "same rights and the same benefits”. After the sharereform, the study of impact of ownership concentration on corporate performance hasbecome a hot research theorists in recent years.This paper summarizes the research at home and abroad, based on theprincipal-agent theory, stakeholder theory, Analysis the relationship betweenownership concentration and firm performance. In this paper, the ratio of the largestshareholder, the ratio of the top five shareholders,the ratio of the top five shareholders’square, the ratio of the largest shareholder with a shareholding ratio of the secondlargest shareholder of the four indicators as a measure of indicators of ownershipconcentration. The company’s financial performance, asset operating performance,liquidity, ability to develop as a measure of corporate performance indicators, Analysisthe relationship between ownership concentration and corporate performance deeply.On the basis of existing research,this paper first randomly selected500listedcompanies,through the analysis of the data of500listed companies, proves thatChinese listed companies equity concentration exists the phenomenon of lower theoverall, eventually to the Shanghai Stock Exchange after the share reform is owned by absolute concentration into relative of162companies as the research sample, theownership concentration and corporate performance has carried on the empiricalanalysis, trying to find out the relationship between the two and find out the optimalownership concentration.Empirical results of this study showed that: ownership concentration can affectthe company’s performance. The largest shareholder and corporate performanceinverted U-curve relationship, the top five shareholders’ square and corporateperformance inverted U curve relationship,the ratio of the top five shareholders andcorporate performance has a positive correlation,the largest shareholder with a stakeof the second largest shareholder and corporate performance ratio is negativelycorrelated.We can see the results from the study: in order to improve business performance,the company must maintain proper ownership concentration and the necessary equityrestriction, so that large shareholders can exercise their decision-making power, theother shareholders to implement its own checks and supervision. Countries also needto provide the necessary protection and support system for the long-term healthydevelopment of the company.