Study On The Relationship Between Ownership Structure And Corporate Performance: Evidence From Chinese Companies Listed On The GEM Board

Abstract

The study on which this article reports, analyzed the current situation of ownership structure and corporate performance based on the panel data of 153 companies listed on the Growth Enterprises Market (GEM) board from 2010 to 2012 and explored the mechanism of companies’ ownership structure to corporate performance with multiple regressions. The results show that tradable shares, state-owned shares and managerial shares have a negative correlation with corporate performance, and that there is a significant quadratic non-linear relationship between tradable shares and corporate performance while legal-person shares are not significantly related to corporate performance. We also found that the shareholding ratio of the top ten largest shareholders has a significantly positive correlation with corporate performance but we failed to find any significance for the largest shareholder and the Z index.