The Empirical Study On The Relationship Between Ownership Concentration And Company's Performance

To a large extent,the degree of ownership concentration determines the distribution of corporate control power and then will be reflected in the control of company's daily operations and decisions,which influences company's performance.It means that ownership concentration is one of the key factors that determines company's performance.Reasonable ownership concentration can play a positive role between shareholders and management layer.Therefore,domestic and foreign scholars have conducted a lot of theoretical analysis and empirical tests on the relationship between ownership concentration and company's performance.Most of the existing literatures study the relationship between ownership structure and company's performance of listed companies in the whole market and less researches are on one industry.Especially,no study is on China's aluminum industry.Even for the studies of the whole market,the empirical results are inconsistent because of the differences in the selection of variables and the selection of sample data.In addition,some scholars have study that the relationship between ownership structure and company's performance will not be the same because of industry differences.As the basic industry for the development of national economy,aluminum industry occupies a position of strategic value.If we can clearly understand the relationship between ownership structure and company's performance of listed companies in China's aluminum industry,we can improve company's performance by optimizing ownership structure,which will have practical significance for the development of China's aluminum industry and the development of national economy.But,the existing literature conclusions can't be applied to the listed companies in China's aluminum industry directly.Based on the above reasons,this thesis makes an empirical study on the relationship between ownership structure and company's performance of listed companies in China's aluminum industry.The thesis is divided into five parts.The first part introduces the background and significance of this article and reviews the research literatures.The second part is the theoretical analysis of the relationship between the ownership structure and the company's performance.The third part summarizes and analyzes the ownership structure and company's performance of listed companies in aluminum industry.The fourth part makes an empirical study on the relationship between the ownership structure and the company's performance.This thesis selects 20 listed companies in aluminum industry as samples and chooses the data from 2012 to 2016 to make an empirical study.Considering the one-sidedness of the single index evaluation,this thesis uses the principal component analysis method to get the comprehensive score as the measurement of the company's performance evaluation.The regression model is set as individual fixed effect model.The results of the empirical study show that the ownership concentration and the company's performance have a negative correlation.Based on the theoretical and empirical conclusions about the relationship between ownership structure and the company's performance,the fifth part puts forward the proposals of optimizing the ownership structure.