The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM
Purpose: This study researches the relationship between ownership structure, capital structure and corporate performance of the companies listed on the China Growth Enterprise Market (GEM). Methodology: This study collects the panel data for 490 companies from 2016 to 2019. I use the fixed effect...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2020
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| Online Access: | https://eprints.nottingham.ac.uk/62372/ |
| _version_ | 1848799950104690688 |
|---|---|
| author | Wang, Huixin |
| author_facet | Wang, Huixin |
| author_sort | Wang, Huixin |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Purpose: This study researches the relationship between ownership structure, capital structure and corporate performance of the companies listed on the China Growth Enterprise Market (GEM).
Methodology: This study collects the panel data for 490 companies from 2016 to 2019. I use the fixed effects regression model to analyse the data. In addition,this research chooses ROA, the largest shareholder's shareholding ratio, the top five largest shareholder's shareholding ratio, management shareholding, leverage, short-term debt ratio, and long-term debt ratio as variables.
Results: Empirical analysis presents that there is a significant positive correlation between the fraction of shares held by largest shareholder and firm performance. In addition, the top 5 shareholders also has a positive effective on firm performance. However, the relationship between managerial ownership and firm performance is not significant. In term of capital structure, leverage has negative relationship with firm value, but short term debt rate are positive with company performanc. What is more, the relationship between long term debt and firm performance is not significant.
Conclusion:Increasing equity concentration and reducing debt level to a certain extent are beneficial for companies listed on the China GEM. Shareholders should adopt appropriate incentive measures and monitoring mechanism to reduce agency cost and strengthen the alliance effect between management and shareholders. Companies should make reasonable use of debt financing to optimize their own capital structure. |
| first_indexed | 2025-11-14T20:43:48Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-62372 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:43:48Z |
| publishDate | 2020 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-623722023-04-13T12:01:01Z https://eprints.nottingham.ac.uk/62372/ The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM Wang, Huixin Purpose: This study researches the relationship between ownership structure, capital structure and corporate performance of the companies listed on the China Growth Enterprise Market (GEM). Methodology: This study collects the panel data for 490 companies from 2016 to 2019. I use the fixed effects regression model to analyse the data. In addition,this research chooses ROA, the largest shareholder's shareholding ratio, the top five largest shareholder's shareholding ratio, management shareholding, leverage, short-term debt ratio, and long-term debt ratio as variables. Results: Empirical analysis presents that there is a significant positive correlation between the fraction of shares held by largest shareholder and firm performance. In addition, the top 5 shareholders also has a positive effective on firm performance. However, the relationship between managerial ownership and firm performance is not significant. In term of capital structure, leverage has negative relationship with firm value, but short term debt rate are positive with company performanc. What is more, the relationship between long term debt and firm performance is not significant. Conclusion:Increasing equity concentration and reducing debt level to a certain extent are beneficial for companies listed on the China GEM. Shareholders should adopt appropriate incentive measures and monitoring mechanism to reduce agency cost and strengthen the alliance effect between management and shareholders. Companies should make reasonable use of debt financing to optimize their own capital structure. 2020-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/62372/1/20134120-BUSI4153-The%20Impact%20of%20Ownership%20Structure%20and%20Capital%20Structure%20on%20Firm%20Performance%20Evidence%20from%20China%20GEM.docx Wang, Huixin (2020) The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM. [Dissertation (University of Nottingham only)] |
| spellingShingle | Wang, Huixin The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM |
| title | The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM |
| title_full | The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM |
| title_fullStr | The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM |
| title_full_unstemmed | The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM |
| title_short | The Impact of Ownership Structure and Capital Structure on Firm Performance: Evidence from China GEM |
| title_sort | impact of ownership structure and capital structure on firm performance: evidence from china gem |
| url | https://eprints.nottingham.ac.uk/62372/ |