the Shareholder Structure with Power Balance and Corporate Performance-An empirical study from the listed manufacturing companies

Based on the 2002 to 2004 datas of the listed manufacturing companies from the Shanghai and Shenzhen exchanges, the paper makes an empirical study on the influence of the characteristics of power balance with shareholder structure on company's performance. The results show that the companies' operating performance improve with the increase of the proportion of shares which the second major shareholder own and the decrease of the gap of the first and second largest shareholders in the non-absolutely-holding listed companies. Through independent samples T-test the research shows that the performance of two kind of companies taken 10% of the equity ratio as the boundary has significant difference,and the share of 10% as the threshold of balance shareholders is a good choice. The research also shows that the number of balance shareholders is a positive correlation to the company performance.