Does Ownership Concentration Affect Corporate Performance of Listed Companies in Coastal Areas? - A Comparative Analysis of Three Coastal Areas in China

Abstract

Zhou, X.Y.; Yin, Y., and Dai, J.H., 2020. Does ownership concentration affect corporate performance of listed companies in coastal areas?-A comparative analysis of three coastal areas in China. In: Qiu, Y.; Zhu, H., and Fang, X. (eds.), Current Advancements in Marine and Coastal Research for Technological and Sociological Applications. Journal of Coastal Research, Special Issue No. 107, pp. 296-302. Coconut Creek (Florida), ISSN 0749-0208.In this paper, China's coastal areas are divided into Pearl River Delta area, Yangtze River Delta area and Bohai Bay area. Through the study of 2144 Shanghai and Shenzhen A-share listed companies through the year of 2014-2018 in those coastal areas, this paper analysis the correlation between ownership concentration and corporate performance. The corporate performance is measured by Return on Assets (ROA). It is found that ownership concentration positively influences corporate performance of listed companies in the coastal areas. Further research found that the positive effect of ownership concentration on corporate performance in the coastal areas of China with lower proportion of SOEs is higher than that with higher proportion of SOEs. After using the surrogate variable on the regression models proposed in this paper, the conclusions drawn above are still robust.