The Relation Analysis of Equity Structure and Its Performance on Chinese Listed Bank
ABSTRACT
With the development of reform of stock system among Chinese commercial banks, more and more listed banks are coming forth to the market, so it is important to analyze the relationship between the equity structure and its perform-ance of Chinese listed bank. For representatives, this article selected 6 banks from the total of 14 listed banks, and then made the demonstration analysis about the relationship between the performance and equity structure, according to their different equity structures. The result shows the first major shareholder is significantly relative to banks’ perform-ance, by contract, there’s no notable correlation between the big five /ten and bank’s performance, but square sum of equity by the ten big is correlate to the performance.
With the development of reform of stock system among Chinese commercial banks, more and more listed banks are coming forth to the market, so it is important to analyze the relationship between the equity structure and its perform-ance of Chinese listed bank. For representatives, this article selected 6 banks from the total of 14 listed banks, and then made the demonstration analysis about the relationship between the performance and equity structure, according to their different equity structures. The result shows the first major shareholder is significantly relative to banks’ perform-ance, by contract, there’s no notable correlation between the big five /ten and bank’s performance, but square sum of equity by the ten big is correlate to the performance.
Cite this paper
nullC. Zheng, Z. Yan and L. Wei, "The Relation Analysis of Equity Structure and Its Performance on Chinese Listed Bank," Journal of Service Science and Management, Vol. 1 No. 2, 2008, pp. 165-171. doi: 10.4236/jssm.2008.12018.
nullC. Zheng, Z. Yan and L. Wei, "The Relation Analysis of Equity Structure and Its Performance on Chinese Listed Bank," Journal of Service Science and Management, Vol. 1 No. 2, 2008, pp. 165-171. doi: 10.4236/jssm.2008.12018.
References
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[1] Berle & Means, Modern (1944), “Corporation and Private Property”, The Macmillan Company, pp.69-70. [2] Fama, E. &Jensen, M. (1983), “Seperation of ownership and control”，Journal of Law and Economy, Vo1.26： pp.301-325. [3] Jensen, M.C.and Meckling, W.H."Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”, Journal of Financial Economics, 1976, vol.3, 305-360. [4] McConnell and Servaes (1990), “Additional Evidence on Equity Ownership and Corporate Value”, Journal of Financial Economics, Vol.27, pp.596-612 [5] John Pound; Richard J Zeckhauser 1988: “The market for corporate control :the economics of corporate takeovers and the New Zealand takeover code : an analysis and proposals for reform ” [Auckland, N.Z.] : New Zealand Centre for Independent Studies [6] Qian Sun and Wilson H. S. Tong(2003),“China share issue privatization: the extent of its success”，Journal of Financial Economics, Volume 70, Issue 2, Nov., pp.183-222 [7] Demsetz and Lehn (1985), “The Structure of Ownership : Causes and Consequences”, Journal of Political Economy , Vol.93, pp.11155-11771 [8] Morck, Shleifer and Vishny,(1988),“Management Ownership and Market Valuation: An Empirical Analysis”, Journal of Financial Economics,Vol.20, pp.293-315 [9] Sanford J Grossman; Oliver D Hart; Hayne E Leland 1980: “Corporate financial structure and managerial incentives, Cambridge, Mass. : National Bureau of Economic Research,” [10] Thomsen, Steen (2000), “Ownership structure and economic performance in the largest European companies” Strategic Management Journal, vol.21, no.6, June, pp.689-705 [11] Holdemess, C. and Sheehan, D., 1988. "The Role of Majority Shareholders in Publicly Held Corporations", Journal of Financial Economics,20. [12] Xu Xiaonian 1997: “Building a company governance mechanism and capital market on the base of corporation structure”, reform ,vol 5, 1997 [13] Chen xiaoyue, Xu xiaodong, 2001 “equity structure, corporate performance and protection of investors’ interests” Economic Research, no.11 [14] Zhou Ye an 1999: “The empirical research on influence of financial repression to enterprise financing ability ” Economic Research Journal, issue 2, 1999 [15] Yu Zhidong 2002: “The corporate governance of listed company in a changing economic environment” publishing house of Renmin University of China, 2002 [16] Xu Xiaonian, Wang Yan, 2000: “The Structure of Ownership and corporate governance on Chinese listed company”, publishing house of Renmin University of China [17] Zhang zongyi, Song zengji, 2003, “Empirical Study in equity structure and corporate performance of listed companies”, Quantity economical technical economy research, no.1 [18] Wu Shu-kun 2002: “Ownership structure and firm performance: an empirical research on Chinese public companies”, China Industrial Economy, issue 1, 2002 [19] Xu xiaodong, Chen xiaoyue, 2003, “analysis of the first major shareholders’ impact on corporate governance and performance”, Economic Research, no.2 [20] Bai chongen, etc.2005, Empirical Study in governance structure of Chinese listed companies Economic Research, no.2 [21] Li hanjun, Zhang junxi, 2006, “The endogenetic degree of Listed corporate governance and performance.” , Management World, no.5 [22] Xu liping, etc. 2006, “Equity Concentration & Multi-shares Balance and impact in corporate performance”, Economic Research, no.1 [23] Yang deyong, Cao yongxia, 2007, “Empirical Study of equity structure and performance about Chinese listed banks”, Financial Research, no5 [24] Li hanjun, Zhang junxi, 2006, “The endogenetic degree of Listed corporate governance and performance.” , Management World, no5.