Controlling Shareholders and Companies' Financial Performance——Comparative Analysis between Private-controlled Listed Companies and State-owned Listed Companies

Although a number of literatures compare the performances of state-owned listed companies with that of private-controlled listed companies,no stable conclusion has been reached.Using western founding family business theory,this paper,divide private-controlled listed companies into two groups: founding-family controlling and non-founding family controlling business.The authors find that the result is somewhat complex: the performance of total private-controlled listed companies is not different from that of state-owned listed companies;meanwhile,when the listed companies are controlled by founding families,the performance is better.The paper also finds that there exists the positive relationship between holding shares of the largest shareholders and corporate financial performance.