Abstract

This study examines the relationship between ownership structure and enterprise performance from the perspective of enterprise life cycle, by adding the variables of the enterprise life cycle stages into the model, to explain the inconsistence with the previous study results on this issue. Using a unique 2002 - 2007 panel data of the listed Chinese companies, this study finds that ownership concentration has a significant positive impact on enterprise performance both at the growth stage and decline stage, but not prominent at the mature stage. Ownership control has a significant negative impact which is gradually weakening on enterprise performance at the growth stage, and it has a significant positive impact on enterprise performance at the mature stage, but not prominent at the decline stage. There are no prominent curve relations between ownership concentration, ownership control and enterprise performance.

Key words: Ownership structure, ownership concentration, ownership control, enterprise life cycle, enterprise performance, empirical study, China.