The Impact Of The Equity System Of Listed Manufacturing Companies On Corporate Performance

In this treatise,through comparing the influences of the equity institution of the listed manufacturing enterprises in the ethnic-minority area and the non-ethnic-minority area on enterprise performance,we want to discover the defects in the arrangement of equity institution,and meanwhile reveal the significant difference between the ethnic-minority area and non-ethnic-minority area about our research content,and then give referential suggestions for solving the defects and closing the significant difference.After research,we found that among the top 10 major shareholders of the listed manufacturing enterprises,(1)in the aspect of equity ownership,the public equity has significant negative impacts on enterprise performance in the ethnic-minority area and the non-ethnic-minority area,and the significant negative impact is bigger in the ethnic-minority area;the private equity has significant positive impacts on enterprise performance in both areas,and the significant positive impact is bigger in the non-ethnic-minority area;(2)in the aspect of equity concentration,the impacts of the:first major equity and the top three major equity on enterprise performance are not significant,but in the non-ethnic-minority area,the impacts are significantly positive;(3)in the aspect of equity restriction on the first major equity,the impact on enterprise performance is significantly positive in ethnic-minority area,but is significantly negative in non-ethnic-minority area;(4)in the aspect of the legal nature of the equity owner,the legal-person equity has significant positive impacts on enterprise performance in both areas,and the significant positive impact is bigger in the non-ethnic-minority area;the natural-person equity has non-significant impacts on enterprise performance in both areas.Additionally,we also found that(5)the equity incentive plan of the listed manufacturing enterprises has non-significant impacts on enterprise performance in both areas.In(1)to(4),the significant difference of the impacts of the equity institution of the listed manufacturing enterprises on enterprise performance between the ethnic-minority area and the non-ethnic-minority area,we think,can be attributed to the fact that compared with the non-ethnic-minority area,the ratio of listed state-owned manufacturing enterprises in the ethnic-minority area is higher and the ratio of listed private manufacturing enterprises is lower—statistically,in the sample of the ethnic-minority area,state-owned enterprises account for 54.28%,and private enterprises account for 45.72%;in the sample of the non-ethnic-minority area,the former accounts for 29.88%,and the latter accounts for 70.12%.Further empirical studies shown that the significant negative impact of public equity on enterprise performance is bigger in the state-owned enterprise,and the significant positive impact of private equity on enterprise performance is bigger in the private enterprise;the impact of equity concentration(the first major equity and the top three major equity)on enterprise performance is significant negative in the state-owned enterprise,but is significant positive in the private enterprise;the impact of equity restriction on the first major equity on enterprise performance is significant positive in the state-owned enterprise,but is significant negative in the private enterprise;the impact of the legal-person equity on enterprise performance is non-significant in the state-owned enterprise,but is significant positive in the private enterprise.To some extent,this result has supported our conjecture.In(5),the reason why the equity incentive plan of the listed manufacturing enterprises has non-significant impacts on enterprise performance in both areas,we believe,can be probably attributed to the fact that the quantity of shares derived from the equity incentive plan is nothing much,so that compared with employees’compensation benefit and employees’ wealth,the worth of equity incentive is very low.Through the study of annul reports of the listed manufacturing enterprise,we found that to some extent,our conjecture is reasonable.According to the above conclusions,with regard to the impact of the equity institution of the listed manufacturing enterprise on enterprise performance in the ethnic-minority area and the non-ethnic-minority area,to solve the defects of the arrangement of equity institution and to close the significant difference between the ethnic-minority area and the non-ethnic-minority area,we believe that the most direct and effective way is to privatize the public equity,and the typical case is the privatization of state-owned enterprises in light of the public-to-private change of the controlling stake.However,effectiveness is not equal to feasibility.Privatization may only be applied to the state-owned enterprises that have high private debt and have no enough money to repay;to the state-owned enterprises that have relatively healthy finance,privatization is not feasible,and is also not allowed by government policy.So we have to take the second best:on the premise of the predominance of public equity,we shall increase the intensity of the mixed-ownership reform in state-owned enterprises,replacing part of public equity with private equity,especially replacing part of the absolutely predominant public equity;thereby,increase the restriction of the private equity on the public equity,and bring down the concentration of public equity;meanwhile,in light of the fact that the stockholders participating in the public-to-private replacement of equity,in most cases,are legal persons,the legal-person equity in quantity will not change too much;instead,the ratio of private equity in the legal-person equity will increase greatly,so that the legal-person equity will probably have a positive influence on enterprise performance.In addition,to make the equity incentive plan have a significant positive impact on enterprise performance,we shall concentrate the small number of shares on management level,especially the backbone members of management.Enough equity incentive to backbone members will be bound to reduce the principal-agent costs,stimulating the motivation of work,and bringing more benefits to enterprise performance.