Relationship between Equity Ownership Structure and Firm Valuation on Construction Industry Listed Firms

摘要

In recent ten years, as the state-owned enterprises restructured and securities market rapidly developed, more and more scholars paid attention to the study of China's corporate governance. In the empirical study of relationship between equity ownership structure and firm performance, most empirical study focused on all listed companies of Chinese two exchanges, and empirical study of special industry was rare. Regarding Tobin's Q as measuring the firm valuation, using the independent variable with ownership structure, the relationship between the ownership structure and the performance of Chinese construction industry was investigated. Then, ordinary least square was estimated the equations with pooled data of two exchanges during the period 1998-2001 in a sample of construction listed firms. In the end, the results of the empirical study indicated that state ownership was significantly negatively related to Tobin's Q, legal person ownership was quadratic related to Tobin's Q, and circulate shares were significantly positively related to Tobin's Q. The results also showed ownership concentration was significantly negatively related to Tobin's Q and outside blockholders was significantly positively related to Tobin's Q. The conclusion was applied to suggest policy implications of Chinese construction firms' reform.