Abstract
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Abstract
In recent years, with the reform of tradable and a series of other capital market system,
Chinese stock market have made a continuous development, the number of listed
companies became more and more, and the market value has also increased. However, a
large number of listed companies have run into financial difficulties after a brilliant
post-marketing experience, due to the excessive pursuit of business performance while
ignoring the concern of the financial risk. Therefore, we choose to study the financial risks
of the listed companies. There are many reasons for the causes of financial risk, both
internal factors and external factors. The internal factors include decision-making mistakes
on investment and financing, manager’s behavior of moral hazard and adverse selection
under agency, and the tunnel of the company's assets by controlling shareholders. After
analysis of the phenomenon, we found that the ownership structure can be considered as
the deep-seated irrational reason. Therefore, this paper aims to explore the impact of the
ownership structure on financial risk.
This article selects manufacturing listed companies on A-share market for the study,
and conducts research around the following ideas: First, introduce the background,
significance, research methods and the main framework and possible innovations in this
article; Second, review and comment on the documents of ownership structure, financial
risk and the relationship between them. Followed put forward this article’s hypothesis after
analysis of the theory of ownership structure and financial risk, and then make the
empirical analysis of the relationship between ownership structure and financial risk from
angle of the liquidity structure of equity, equity-type, ownership concentration and equity
balance degree , and finally make the conclusions and propose some recommendations.
Empirical results of this study showed that: the impact of ownership concentration on
financial risk is the most significant, it implies that the higher ownership concentration, the
lower the level of financial risks; followed is equity balance degree, there are significant
positive correlation between equity balance degree and financial risk, it implies that the