Research On The Influence Of Ownership Structure On Corporate Performance

Efficient and sound corporate governance structure can not only effectively reduce the risks that shareholders need to bear,but also restrict and supervise the use of the power of major shareholders to improve the performance of enterprises.As the core of corporate governance,equity structure plays a fundamental role in the management of listed companies.In the past 10 years,with the continuous progress of marketization,the equity structure of listed companies has also been reformed and restructured.What is reasonable ownership concentration? Can equity checks and balances effectively improve the performance of the company? Is the proportion of state-owned shares moderate? Similar problems such as those mentioned above need to be addressed urgently.Therefore,the key problem need to be solved is what kind of equity structure can maximally improve the performance of the company.This paper collects and consolidates the data of 913 listed companies before and in 2007,in Shanghai and Shenzhen stock exchange from 2007 to 2016.Using these data,based on the theory of equity structure and corporate governance,the comprehensive performance index f is extracted through principal component analysis.The empirical study is carried out through general least square method and fixed effect model.At the same time,the paper gives an regression based on that whether the largest shareholder holding controlling interest and analyses the significance of the coefficient of each variable in different samples The results show that the average ratio of the top 10 shareholders of listed companies in China up to 52.91 %.And the increase of this indicator significantly improves the performance of the company.When the company is controlled by multiple shareholders,the effect of ownership concentration on the performance of the company shows a significant positive correlation.However,when the company is controlled by a single shareholder,there is a negative but not significant effect between them.In addition,the influence of the equity balance degree on the performance of the company also showes a significant positive effect.But on the whole,China's listed companies have weak equity balance ability.In recent years,the higher proportion of tradable shares state-owned shares in listed companies have significantly inhibited the improvement of the company's performance.However,institutional investors' shareholding ratio has little influence on it.Based on the results of the study,the paper proposes a few suggestions.Firstly,establishing a good incentive mechanism of the equity and giving full play to the decision effect of major shareholders.Secondly,strengthening the balance of equity to protect the interests of other stakeholders,reducing the proportion of state-owned shares and establishing sound financing channels.Finally,improving share circular market and enhancing the development of relevant laws and regulations.