An Empirical Study on the Relationship Between Ownership Structure and Corporate Performance: from the Perspective of Endophytism

Abstract

Based on the statistics of Chinese listed companies in Shanghai and Shenzhen stock exchange from 2001 to 2004, selecting 900 companies as the study sample which totally contains 3600 observation samples after screening, this paper carries on a deeply analysis on the relationship between ownership structure and corporate performance from the endogenous points of view. The results indicate that the relationship between state-owned shares and corporate performance is significantly Ushaped, however, other variables of ownership structure in the framework of endophytism do not pass the significance test. The formation and constraints of ownership structure are unique in our listed companies. Moreover, there is significant difference in corporate governance compared with both mature capital market and emerging ones. Thus it comes to a conclusion that there is no so-called optimal ownership structure and then ownership structure itself maybe endogenous.