Firstly, relationship between ownership structure and performance. Grossman and Hart (1980) especially found that the “free ride” phenomenon might exist, so the dispersed ownership structure is not conducive to the effective supervision of the shareholders to the manager. The model they build also shows, the lack of management of individual shareholders and managers actively participate in corporate governance can drive the company 's value growth under the dispersed ownership structure. Because they get less than the cost of their pay, no shareholder is willing to actively supervise the operators. Therefore, the dispersed ownership structure is not conducive to the improvement of enterprise …show more content…
And at the same time, the increase of the proportion of the company, the company 's performance will increase at the first place, then reduce gradually. For example, when the proportion of the management of the shareholding reached about 50%, the value of the enterprise achieves to the lowest point. Furthermore, Pedersen and Tomsen (1999) found the 12 countries of the European 435 companies, that equity concentration and the company 's net asset return rate was a significantly positive correlation. The comparison of the commercial Corporation (maximum shareholder holdings of less than 20%), namely their Tobin Q (Tobin 'Q s). And the comparison of the accounting profit rate found that there is no significant difference between the results of the accounting and the ownership structure of the