Ownership Concentration, Power Balance with Shareholder Structure and Sustainable Growth of Listed Companies

This paper selected the A-share listed companies as research samples from Shanghai and Shenzhen Stock Exchange Centers between 2004 and 2009, in which the first and second largest shareholders are non-state shareholders. This paper examines the influence of ownership concentration and power balance with shareholder structure to the sustainable growth of listed companies. The empirical results can be generalized as follows: first, the higher the concentration of companies' ownership the more inclined to deviate from the sustainable growth rate. Second, power balance with shareholder structure can help companies achieve sustainable growth. Third, compared to the largest shareholder' share rate more than 50%, the promote function of power balance with shareholder structure to the sustainable growth of listed companies more significant when the rate less than 50%.These results indicate that high ownership concentration of listed companies tend to over-growth or low-growth. And the positive role of power balance with shareholder structure to the sustainable growth of listed companies is restricted by the share rate of the largest shareholder, when the largest shareholder' share rate more than 50% the function is failure.