The Relationship between Ownership Concentration, Equity Restriction and Firm Performance

摘要

This paper has studied the relationship between ownership concentration, equity restriction and firm performance of Chinese listed corporations. In this article, we collect 373 listed manufacturing companies with 9 years data in Shanghai and Shenzhen stock exchanges, and estimate the parameters using panel data model, getting several conclusions as follow: the relationship between corporation performance and ownership concentration is significant positive, and this linear relationship is still significant when the controlling shareholders are different nature. Besides, equity restriction has a significant negative effect on corporation performance. With the degree of equity restriction being smaller, the performance improves , which confirms that the largest shareholder is restrained by other large shareholders, and then it can limit the major shareholder to exploit the minority shareholders, reducing the "tunnel- effect".