Research On The Relationship Between Ownership Structure And Corporate Performance Of Listed Companies In Non-Bank Financial Industry

Ownership structure, in the total equity of the joint stock company, reflect the basic properties of shareholders, also reflects the amount of shareholders in the company has a share of the decision-making, formed by the interaction between shareholder shareholding system will affect the company’s operation and management of productive. Ownership structure is the foundation of corporate governance structure, corporate governance structure is the specific construction form of equity structure, various kinds of ownership structure determines different enterprise organization structure, so as to determine the different corporate governance structure, will affect the corporate performance.In China, listed companies have special ownership structure, namely, "equity division" or " split share ", different proportion of shares will have a different impact on company performance. However, the split share structure could not meet the needs of reform, development and stability of the capital market. Therefore, China’s securities market started to implement the reform of in 2005, to promote the healthy and stable development of China’s securities market. In before and after the split share period, many Chinese scholars study the equity property changes. Due to the non-tradable share reform completed by the end of 2006, so this paper attempts to study on equity structure starting from 2007, after the reform of split share structure brought about by the changes.Study on the relationship between ownership structure and corporate performance has been a research focus. However, due to the complexity of the ownership structure and measure indicators of diversity between the two did not form a unified conclusion. One of the reasons is that the subject of studies by different scholars are different, because of the current literature on China’s securities, insurance and other non-bank financial sector equity structure, very few, therefore, this paper attempts to study the relationship between ownership structure and corporate performance in the non-bank financial industry.Non-bank financial sector development has a very close relationship with economic and social development. China’s financial landscape has long been dominated by banks, enterprise financing nature tend to be indirect financing bank. Because our country social financing structure simplification, making enterprises in the economic cycle of debt cost pressure is highlighted, and this will cause great negative impact on the worse against the risk of small and medium-sized enterprise which they have enthusiasm and creativity, and even the crisis threat the enterprise survival and development. Therefore, diversified financial landscape and promoting the development of China’s capital market, is an important step in transitional China. If "the nine" kicked off the equity division reform, the "new the nine" is put forward for the development of China’s capital market has once again made clear development direction. It provides policy guarantee to the development of non-bank financial sector. Therefore, in this paper, the author study on industry object is accord with the background of the Times and now.This paper’s discussions follow these ideas:This article first introduced the selected topic background and innovative ideas, on the basis of corporate governance theory, referring to the methods of domestic and foreign research, selecting Shanghai and Shenzhen A shares between 2007 and 2014,20 non-bank financial industry listed companies as research samples, to study the non-bank financial sector relationship between ownership structure and corporate performance of listed companies.The full text is divided into six chapters, and chapters of content and structure arrangement is as follows:The first chapter, introduction, are mainly introduced in this paper, the research background and research meaning, research contents and research methods and structure of this paper, and this paper innovation points and deficiencies.The third chapter, theoretical foundation and empirical research method, this paper first introduces several important concepts, in the paper under the equity structure and corporate performance. Then, this article reviewed the principal-agent theory and benefit expropriation theory, Ownership concentration and equity balance degree theory. Based on the theory initially formed the mechanism of action of the relationship between ownership structure and corporate performance. Finally, the article introduces the endogenous variables and explanatory variables of principal component analysis. Introduce theory of endogenous variables, which is provided below inspection equity structure with endogenous theoretical guidance. Is as explained variable, and corporate performance in the existing literature and definition, there is no fixed measure. Therefore, this paper USES principal component analysis to extract comprehensive performance index as the company’s performance.The fourth chapter, during the period of 2007 to 2014, the paper simply introduces and analysis the present situation of the non-bank financial sector ownership structure and corporate performance. The non-bank financial sector in China equity checks and balances in reducing the number of company, and a large number of companies alone has a tendency to rise. Performance indicators in the non-bank financial sector company, the rate of return on total assets, net assets and earnings per share and comprehensive performance, are not consistent trend.The fifth chapter is the empirical research part. This chapter mainly divides into two parts, the upper part study design, the lower part of the empirical analysis part.For the study design part, first, based on the theory analysis, this paper put forward ownership concentration and equity balance degree between the corporate performance indicators and research hypothesis. Secondly, this paper set conditions to select data, get 20 non-bank financial industry listed companies from 2007 to 2014, eight years of relevant data. Then, this paper introduces the variables used in the study. In this paper, on the basis of reference ownership structure type of literature at home and abroad, the use of the variable is divided into three categories, ownership structure, corporate performance and control variables. Among them, the equity structure is divided into two categories, ownership concentration and equity balance degree index, equity concentration to choose the first big shareholder shareholding CR1 measure. Equity balance degree to choose the first big shareholder shareholding and the second to fifth largest shareholder shareholding ratio of Z to measure. In terms of corporate performance, this paper USES principal component analysis method, using the business revenue, total profit, net profit, return on total assets, return on equity and earnings per share these six indicators obtained the comprehensive indicator of corporate performance. In the aspect of control variables, this article selects the domestic commonly used indicators, the characteristic of company is total assets, asset-liability ratio, the enterprise risk, the enterprise growth, executives shareholding, industry attributes as control variables. Finally, in terms of model, this paper divided into three kinds of view modeling. Respectively by exogenous static perspective, endogenous static and dynamic endogenous perspective to examine the non-bank financial sector relationship between ownership structure and corporate performance of listed companies. For the empirical analysis part, this article first to analyze descriptive statistics for each variable, and correlation analysis. Secondly in OLS of three perspectives respectively by least-square method,3 SLS, GMM simultaneous equation, the dynamic panel GMM three methods to estimate the model. Finally, the stability of the model related to inspection.The sixth chapter, are main conclusions and policy Suggestions. In this paper, the fifth chapter the empirical analysis the following conclusions:(1) under the exogenous static perspective, this paper doesn’t give a deterministic non-bank financial industry listed company ownership structure and corporate performance relationship. Select different performance indicators, the results differ greatly. Therefore, this article applies the method of inspection of endogenous variables, confirmed the non-bank financial sector the equity structure of listed companies is the endogenous instead of exogenous. (2) under the endogenous static perspective, non-bank financial is the largest shareholder of listed companies ownership and corporate performance show significant u-shaped relationship, there is no interaction between under the action of a current, and the first big shareholder ownership should not be within (33.10%,36.63%), the actual sample is CR1 in only nine samples (33.10%,40%), the actual situation that most of the company’s largest shareholder ownership should not be within (33.10%,40%), or corporate performance will be in a low state. The first big shareholder shareholding proportion and the second to fifth largest shareholder shareholding ratio of the sum of the significant u-shaped relationship with corporate performance, existing in the current under the action of interaction, and the first big shareholder shareholding proportion and the second to fifth largest shareholder shareholding ratio of the sum of the should not be in [5.278,5.285], or corporate performance will be low; The first big shareholder shareholding proportion and the second to fifth largest shareholder shareholding ratio of the sum of the in [0.3,0.99], namely equity checks and balances of the company, the company has good performance. (3) under the dynamic endogenous perspective, non-bank financial is the largest shareholder of listed companies ownership and corporate performance exists inter-temporal effect, the largest shareholder in considering ownership problems, the company the influence of the performance of the first big shareholders holding future than the first big shareholder change its stake to future corporate performance influence. And corporate performance of the previous period on the first big shareholder shareholding and the second to fifth largest shareholder shareholding ratio of the sum of the negative feedback influence is greater than the first big shareholder shareholding of the previous period and the second to fifth largest shareholder shareholding ratio of the current corporate performance is the sum of influence.On the basis of the summary, this paper puts forward a few countermeasures: ownership concentration should avoid the reasonable area, ownership balance type companies have more advantage; Due to the ownership concentration and equity balance degree show U nonlinear relationship with corporate performance, therefore, different stages of the equity structure of the company should choose different adjustment strategy; In this paper, empirical research, in under the action of the current period, the relationship between management ownership and ownership concentration was not significant, but its relationship with equity balance degree there is a significant positive correlation, therefore attaches great importance to and strengthen the building of the management equity incentive system helps to adjust the equity structure, which affects corporate performance; Strengthen legal construction and market supervision in the securities market, the protection of rights and interests of minority shareholders, and promote the healthy and steady development of our capital market.The innovation of this article is mainly has the following several aspects:First, is the choice of the object of study. This article selects the non-bank financial sector mainly covers the brokerage, insurance, trust these three kinds of subsidiary industries.Second, is the choice of the Angle of view. This article integrated the exogenous static perspective, endogenous static and dynamic endogenous perspective, using OLS respectively,3 SLS, GMM simultaneous equation and dynamic GMM three methods to estimate the model.Third, be explained variable selection of performance indicators. This paper USES principal component analysis, the six comprehensive performance indexes of comprehensive performance index, and selected earnings per share is as explained variable stability test.Fourth, this paper studies the relationship between ownership concentration and corporate performance, equity concentration CR1 not reasonable interval are obtained. Research on equity balance degree relationship with corporate performance, also calculate the first big shareholder’s shareholding and the second to fifth largest shareholder shareholding ratio of Z the reasonable range.