Ownership Concentration,Agency Cost And Firm Performance

The rapid development of the global economy into the background of the times,the performance of the company has been the focus of all stakeholders,and also the hot topic of academic research.The performance of the company is affected by many factors,of which are concerned by the academic community is the rationality of the corporate governance structure,and in the corporate governance structure,equity concentration is the most important measure of the ownership structure,equity concentration will directly affect the level of business performance.Moreover,in the process of modernization of the enterprise system,the separation of the two powers brings the contradiction of the goal and the benefit between the shareholder and the manager,that is the agent cost.The existence of agency costs will also affect the relationship between ownership concentration and corporate performance.Therefore,it is helpful to improve the corporate governance structure,select the appropriate proportion of equity and reduce the cost of agency,and provide useful suggestions for the long-term development of enterprises.In recent years,China's economic development momentum has not dimininshed,the economic system reform has been deepening,the 18th Party Congress put forward,the market from the basic role to play a decisive role,it creates a greater expansion capacity>private economic is one of the forms of private economy in China,in the overall economic situation is stable and good environment,has been growing important part of China's huge economic.Now the securities market is active,the number and speed of private enterprises listed on the increasingly accelerated,by becoming a listed company,private enterprises can get a lot of financing within a short time,and governance structure can be improved.In the performance of the concentration of ownership,state-owned enterprises and private listed companies are different,state-owned listed companies often "a dominant",compared with private placement of listed companies is relatively low concentration.It is precisely because of the different performance on the ownership concentration,so this article will focus on the relationship between ownership concentration and business performance of private listed companies,and many private listed companies born out of the early family business,corporate governance still retains the characteristics of family business,there are still many system imperfections.Therefore,in order to further explore the basic principles of the impact of equity concentration on corporate performance and improve the governance structure of private enterprises,this paper will use our private listed companies as research examples and join the intermediary mechanism of agency costs to study the relationship among the three.Based on the above analysis,this paper chooses the relevant data of Shanghai Stock Market A-share and Shenzhen Stock Market A-share private listed companies from 2012 to 2015 as the research sample.Through empirical analysis,it is concluded that the increase of equity concentration will increase the performance of private listed companies,and will reduce the agency cost,and the reduction of the agency cost will improve the performance of the firm,the agent cost plays an intermediary role in the concentration of ownership and the performance of the firm.Through the research,it can provide some suggestions for the reasonable establishment of the ownership structure of private listed companies,and play a certain role in the quantification of agent cost and the establishment of multi-dimensional performance system,so as to strengthen the performance of private listed companies and promote their long-term development.