Endogeneity, ownership structure and firm performance— Based on the analysis of structural equation model

摘要

This paper investigates whether ownership structure has significant effects on firm performance of publicly-listed companies in China, and in what ways if it does. Then we select 1200 listed companies in Shanghai and Shenzhen Stock Exchange from 2007 to 2009 as the research samples, and analysis by structural equation model. The results from our study yield unequivocal evidence for the endogeneity of ownership structure. The estimates of the structural equation model we used give evidences to support the notion that it is a significant positive correlation between ownership structure and firm performance; so as firm size and asset-liability ratio. Moreover, it also shows that more ownership variables should be added in model to enhance the total effect.