Paper
Correlation between the Ownership Concentration and Corporate Performance of Chinese Listed Companies
- Authors:
- Song Xiaohua; Wu Yaqin
- Abstract
- The paper chooses 2011-2013 non-financial companies listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange as samples to study the correlation between the corporate performance (ROA) and ownership concentration (the largest shareholder CR_1, the ratio between the largest shareholder and the second largest shareholder Z Index, Herfindahl index H_5). By establishing the regression equation, it can be researched how the concentration of ownership affects operating performance. Through the paper, we find that 1) there is a significant correlation between ownership concentration and corporate performance; 2) there is a strong positive correlation between the proportion of the largest shareholders and corporate capital gains rate; and 3) the Z index and the ROA ratio has a weak negative correlation.
- Keywords
- Ownership Concentration; Corporate Performance; ROA; Stepwise Regression
- StartPage
- 34
- EndPage
- 37
- Doi