The relationship between ownership structure and corporate performance in Chinese listed companies

Zheng, Shuhan (2016) The relationship between ownership structure and corporate performance in Chinese listed companies. [Dissertation (University of Nottingham only)]

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Abstract

Nowadays, the listed companies have become an essential part of Chinese national economy and the backbone of the social development. The operating performance of those listed companies has attracted the increasing attention those days. The connection and relationship between the ownership structure and the corporate performance have become an important and ongoing issues. This research is not only beneficial in maximizing the own value of the corporate, but also hold significant meaning to the whole national economy. So this research aims to investigate and examine the relationship between the ownership structure and corporate performance by analysing the data in the Chinese listed companies.

After investigating the different relationships from the previous research, it can be summarised that there exist five different relationship—positive relationship, negative relationship, no relationship, U-shaped relationship and inverse U-shaped relationship. By analysing the specific case of China, two hypothesis have been developed. The first one is that the ownership structure and corporate performance are endogenous. And the other one is that the corporate performance holds the inverse U-shaped relationship with the ownership structure.

Using the listed companies from the year 2010 to 2015 in CSMAR database, the 14,713 companies have been selected to the research. Tobin’s Q has been used to present the corporate performance. The Hausman test has been used to test the endogeneity of the variables. The empirical models between Tobin’s Q and other variables have been developed. In the regression estimation period, three different estimation models are built—using all the samples, using different management ownership structures and using different industries. And the robust test has been done in the end. After the analysis, I can get the conclusion that the ownership structure and the corporate performance is endogenous and the relationship between the ownership structure and corporate performance is inverse U-shaped.

In order to better support the idea, more work can be done in the future, such as testing on the other database, trying the database in the other countries and using other methods and etc.

Item Type: Dissertation (University of Nottingham only)
Keywords: ownership structure, corporate performance, endogenous structure
Depositing User: Zheng, Shuhan
Date Deposited: 09 Mar 2017 14:56
Last Modified: 13 Mar 2017 12:36
URI: http://eprints.nottingham.ac.uk/id/eprint/37242

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