Stock Ownership Concentration and Firm Performance-An Empirical Study Based on IPO Companies in China

摘要

With the sample of Chinese initial public offering (IPO) companies in 2001 and 2002, this paper investigates the relationship between stock ownership concentration and firm performance. We find a significant cubic relation between firm performance and stock ownership concentration (percentage of shareholdings by the largest shareholder or square sum of percentage of shareholdings by the first five bigger shareholders); that is, changing with increase of stock ownership concentrating, the firm performance presents a trend of "decrease-increase-decrease."