Ownership Structure,Investment and Corporate Performance——An Empirical Analysis Based on Chinese IPO Firms

Based on Chinese firms initially publicly offering(IPO) in 2000 and 2001,this paper investigates the relationship among ownership structure,investment and corporate performance.We find a significant cubic relationship between the largest shareholders ownership and corporate performance,that is,with the increasing of the largest shareholders ownership,corporate performance goes down-up-down.Furthermore,we also find a significant cubic relationship between the largest shareholders ownership and investment,and its changing directions are same to those of the former curve.At the same time,investment is significantly positively related with corporate performance.Thus investment is an important means to affect corporate performance by the largest shareholders.