Ownership structure, firm size, and performance: a panel data investigation of pharmaceutical manufacturing industry in China
Yongzhuang Li, Dehuan Zhang, Qiuhui Jia
Available Online October 2017.
- https://doi.org/10.2991/febm-17.2017.111How to use a DOI?
- ownership concentration; equity blockholders; firm size; firm performance
- This paper uses the data of A-share listed pharmaceutical manufacturing companies in both Shanghai and Shenzhen Stock Exchange in China for the period from 2014 to 2016. The empirical investigation shows that there is a positive correlation between ownership concentration and firm performance, and firm size plays a negative moderator role in the relationship between ownership concentration and firm performance. There is a positive relationship between equity blockholders and firm performance, in which firm size plays a negative moderator role in the relationship between equity blockholders and firm performance. This also shows that for firms in the pharmaceutical manufacturing industry in China, ownership concentration with equity blockholders, i.e. ownership controlled by only a small number of large shareholders, will improve firm performance. We also conclude, however, firms of large size should be more careful in designing its ownership structure and they are advised to keep balance between ownership concentration and equity blockholders so as to reduce the negative moderator role played by firm size.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Yongzhuang Li AU - Dehuan Zhang AU - Qiuhui Jia PY - 2017/10 DA - 2017/10 TI - Ownership structure, firm size, and performance: a panel data investigation of pharmaceutical manufacturing industry in China BT - Second International Conference On Economic and Business Management (FEBM 2017) PB - Atlantis Press SN - 2352-5428 UR - https://doi.org/10.2991/febm-17.2017.111 DO - https://doi.org/10.2991/febm-17.2017.111 ID - Li2017/10 ER -