An Empirical Study On The Impact Of Separation Of Two Rights On Enterprise Performance

Corporate performance is one of the main goals pursued by listed companies,which reflects a company’s comprehensive governance capability.As a profit-making organization,enterprises should focus on controlling costs,improving efficiency,and focusing on every opportunity that may bring net present value to the enterprise.The separation of ownership and control,as a characteristic variable of family businesses or large conglomerate companies,is one of the important means for ultimate controllers to strengthen control of the enterprise.By separating control rights and ownership,enterprises can alleviate financing constraints,and controllers can diversify investment risks.However,the problems of agency and asset stripping caused by excessive separation have become increasingly serious.In state-owned enterprises,however,the separation of ownership and control has not significantly reduced corporate performance.The impact of the separation of ownership and control on corporate performance has attracted widespread attention from scholars,and this is the main topic of this article..Based on a systematic review of relevant literature on the separation of ownership and control,this article discusses the impact and pathway of the separation of ownership and control on corporate performance.In terms of literature research,this article mainly studied the structural characteristics,advantages and disadvantages of the separation of ownership and control,and the literature on its impact on company performance,grasping the research ideas and conclusions of previous literature.In terms of theoretical analysis,this article analyzed the impact of the separation of ownership and control on corporate performance for two sub-samples:private enterprises and state-owned enterprises,and analyzed the regulatory effect of equity balance and the impact mechanism of institutional shareholding.Compared with private enterprises,the impact of the separation of ownership and control on state-owned enterprises is more significant,so based on the above analysis,this article further studied other transmission channels of state-owned enterprises,providing theoretical basis for the "delegation effect" of the separation of ownership and control in state-owned enterprises by citing the intermediate variables of operating income ratio and asset turnover ratio.This study found that there is an inverted U-shaped relationship between the separation of ownership and control and the performance of private enterprises.The degree of equity balance can weaken this relationship,and the separation of ownership and control can affect the performance of listed companies by influencing the proportion of institutional holdings.In state-owned enterprises,the separation of ownership and control has a positive impact on performance,and the degree of equity balance does not have a regulating effect.The separation of ownership and control can affect the performance of state-owned enterprises by increasing the proportion of institutional holdings,reducing the operating cost ratio,and increasing asset turnover.Furthermore,this study conducted heterogeneity analysis based on the level of financing constraints.Regardless of whether it is a private or state-owned enterprise,the impact of the degree of separation of ownership and control on performance is more significant under high financing constraints.Finally,to verify the reliability of the research conclusions,this study adjusted the performance measurement variables by industry and year,replaced the original independent variable with the one-period lag of the degree of separation of ownership and control,and added control variables to conduct regression analysis.The results were completely consistent with the original conclusions,thereby verifying the reliability of the conclusions.Based on the research results,relevant policy suggestions are further provided.