Ownership structure, firm size, and performance: a panel data investigation of pharmaceutical manufacturing industry in China

DOI

10.2991/febm-17.2017.111How to use a DOI?

Keywords

ownership concentration; equity blockholders; firm size; firm performance

Abstract

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.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - Proceedings of the Second International Conference On Economic and Business Management (FEBM 2017)
PB  - Atlantis Press
SP  - 814
EP  - 826
SN  - 2352-5428
UR  - https://doi.org/10.2991/febm-17.2017.111
DO  - 10.2991/febm-17.2017.111
ID  - Li2017/10
ER  -