| It is the core of modern enterprise system to establish a sound corporate governance mechanism. The sound governance mechanism must be able to supervise the managers effectively to improve the corporate performance. So the relationship between ownership concentration and corporate performance as an important field in the study of corporate governance, it has a high research value. The impact of ownership concentration on corporate performance is implemented through the agency problem, Agency problem results from the separation of corporate ownership rights and management rights in the principal-agent relationship and it results in agency costs. Agency costs cause the waste of enterprise resources, damage the interests of corporate stake holders.It’s the focus of many scholars’ discussion to alleviate agency conflicts and to reduce agency costs so that can improve the corporate performance. Although the relationship between the ownership concentration and corporate performance has made great progress, but it has not reached a consensus. So further research about the impact of ownership concentration on the corporate performance and the approach has important practical significance. Under China’s special economic system, this paper selected listed companies as research samples, test the effect of ownership concentration on the corporate performance, and then add the agency cost to the empirical study,discusses if the agency cost is the approach of the ownership concentration affect on corporate performance.First of all, this paper takes two rights separation theory, principal-agent theory and incomplete contract theory as the theoretical basis, analyzes the relationship between the ownership concentration, the agency problems and corporate performance.Secondly, this paper selects 1100 listed companies listed on the Shanghai stock exchange and Shenzhen stock exchange as the research object, take the data of 2009-2014 as a sample,take the the sum proportion of the top ten shareholders(CR10) and the sum of squares of top five shareholders’ shareholding(Herfi5) as indicators of the company’s ownership concentration,the management asset ratio(AC) was used as a measurement of agency costs. We select the total return on assets, return on equity, earnings per share and net assets per share, current ratio and quick ratio 12 indicators as the evaluation index of the corporate performance,we use the factor analysis method to calculate the score of every listed companies, using descriptive statistics analysis, correlation analysis and multiple regression analysis and other methods, discusses how does the ownership concentration affect the corporate performance.The study find that there is inverted u-shaped relationship between ownership concentration and corporate performance and agent cost has path effect in the process of the ownership concentration affect the corporate performance.Based on the research conclusion, this paper put forward the corresponding suggestions from the macroscopic aspect and microscopic aspect which will improve the corporate governance in our country.By studying the the relationship between the ownership concentration and the corporate performance,this paper enriches the corporate governance theory and provide certain theoretical basis for improving the corporate performance in China. |
