The impact of ownership structure on firm performance: static and dynamic panel data evidence from china's listed companies

In this paper, we conduct static and dynamic panel data analysis of relationship between ownership structure and firm performance. The result suggests that the concentration of ownership plays an important role to firms. It is the concentration of ownership to the largest shareholder that can significantly improve the long-term firm performance, so the current changes of ownership concentration will obviously reduce performance. As time goes on, the negative effects gradually disappear and may even have a certain positive role on enterprise performance. Therefore, it is very important for the largest shareholder to highly hold shares for a long time and to attempt to maintain the ownership stable.