The empirical study of equity structure and performance of company listed on china's small and medium enterprises

Translation from original language as provided by author

The relationship between ownership structure and corporate performance is one of important contents of corporate governance research and hot topic in corporate finance. There is no a theory frame accepted widely and formed,although many conclusions and views are drawn and are deferent. So it is of theoretical value to further research on the relationship between ownership and corporate performance. This paper, based on manufacture corporate listed on SME board, focuses the relationship between ownership and corporate performance. So it is of great reality significance to put forward our corporate governance. Based on the literature reviews on foreign and domestic researches, the paper finds that the probably reasons derives of samples and research methods. So focusing on the listed company in SME (Small and Medium-sized Enterprise) Board, which is the most vigorous board in Chinese stock market, the paper makes a deeper study on the characteristics of its ownership structure, and the relationship between ownership structure and corporate performance with linear and non-linear regression methods, aims to provide some useful conference for the future development of the SME Board. And then the ownership of corporate listed on SME board and its reasons formed are explained. The paper propose some hypothesizes from equity concentration and ownership, established non-linear regression model and linear regression model respectively and conclusions are drawn through empirical study as follows. Firstly, among the factors which have an influence on corporate performance, the control variables total asset and debt ratio have a strong explanation to corporate performance and also the result meet the related theory. Second, the index Z,the ratio of shares of the first shareholder and the second shareholder, has a strong negative relationship with corporate performance. While other index, such as CR1, CR5 and H10, also have a negative direction but not strong. Thirdly, the ratio of state-owned equity, legal-owned equity, institutional-owned equity and the ratio of liquidity is negative to corporate performance although they are not strong in statistics. The ratio of management-owned equity is positive to corporate performance and not strong in statistics