Research on Relationship between Control Transfer, Ownership Structure and Company’s Performance: Evidence from Domestic Listed Companies

Lin Chen, Lin-wan Wei, Zhi-lin Qiao, Yi He

Abstract


Control transfer is a major measure taken by companies to improve the performance. However, it still remains inconclusive that performance will be effectively enhanced after control transfer. Based on agreement transfer, it uses factor analysis method and analyzes performance indicators in sequent five years from 2006 to 2008 with the samples of Chinese stock markets. The results showed that, the performance of listed companies will be increased after the transfer of control rights, but it is only a short-term effect; as to the company’s ownership structure, ownership concentration has a positive effect to firm performance, and the proportion of state-owned shares does not show a positive impact to it. Company’s performance and market value will be enhanced with the resource optimization and resource integration. Finally, it is necessary for company and the whole market to strengthen and standardize control transfer behaviors and optimize equity structure in order to improve the market construction of control transfer system.

Full Text: PDF DOI: 10.5539/ibr.v6n6p66

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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