The Concentration Of Stock Ownership

999 Words4 Pages
1.1 optimize the concentration of stock ownership The empirical analysis shows that the degree of ownership concentration has a significant impact on the performance of the listed banks, and the degree of ownership concentration has a positive effect on the performance of the banks. The reason may be that China 's current market mechanism is not fully mature, the protection of small investors ' rights and interests of the regulatory system is not yet perfect, especially the implementation of the intensity of the need to be strengthened. Different equity models have the relative institutional environment. Most of the dispersed ownership mode and perfect investor protection legal system, in the market mechanism and legal system to protect…show more content…
Because of the clear, governance and management efficiency, the legal person shareholders of commercial banks tend to play a greater influence on the governance structure of the commercial banks than in the state shareholders and the dispersed public shareholders. The proportion of legal person shares is relatively concentrated, they have the ability to supervise the management of commercial banks in the management of the behavior, so that it is more in line with the interests of shareholders. The proportion of legal person shares is large, because the legal person shares cannot flow, can only transfer agreement, with strong stability, and therefore they are more concerned about the long-term development of commercial banks, they have stronger motivation to supervise and control the commercial bank management. Therefore, to increase the proportion of corporate shares, improve the modern enterprise system of commercial banks, play its role in the supervision of bank governance, so that the corporate shareholders in the management of commercial banks play a more important role is to improve the performance of commercial banks is an inevitable choice. 1.3 increase the proportion of floating shares of Listed Banks The empirical results show that there is no obvious correlation between the proportion of tradable shares and bank performance, but this does not mean that the proportion of tradable
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