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Study on Relation between Equity Structure and Performance of Listed Companies - Evidence for Building Industry in A Share Market

Author

Listed:
  • Xinyuan Zhang
  • Zhixiu Guo
  • Xiaorui Feng
  • Yan He

Abstract

The equity structure is the basis for corporate governance, and the decisive factor for performance of listed companies. Considering the return on equity as the measure index of company performance, the paper has collected 2014-2016 data related to index of equity structure from 32 listed companies in Shanghai and Shenzhen, made descriptive statistical analysis and correlation analysis on it with spass20.0 statistical software, and discussed the relation between equity structure and performance of listed companies. The research finds that: Chinese listed companies for building industry still have relatively high equity concentration, imperfect internal governance mechanism and poor equity restriction. The effect of ¡°bargaining¡± is difficultly developed to promote the growth of performance. China shall further strengthen the efforts to control, spur listed companies to reinforce the internal management, and optimize the equity structure to ensure the effective balance, with the purpose of accelerating the healthy and sustainable development of listed companies and safeguarding the interests of medium-small investors.

Suggested Citation

  • Xinyuan Zhang & Zhixiu Guo & Xiaorui Feng & Yan He, 2017. "Study on Relation between Equity Structure and Performance of Listed Companies - Evidence for Building Industry in A Share Market," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(7), pages 114-121, July.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:7:p:114-121
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Chinese building industry; equity structure; equity concentration; equity restriction; company performance;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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