Ownership Concentration, Financing Structure and Enterprise Investment Efficiency

Abstract

Ownership concentration is one of the influencing factors of enterprise investment efficiency. Higher ownership concentration is the main characteristic of the ownership structure of Listed Companies in China. There is a positive correlation between the ownership concentration and the inefficiency investment represented by the proportion of the first big shareholders, the proportion of the top five shareholders and the square sum of the top five shareholders. The structural index of ownership concentration represented by Z index has no significant correlation with the investment efficiency of enterprises. The positive correlation between ownership concentration and inefficient investment in state-owned enterprises is very significant. However, in private enterprises, although equity concentration is also positively related to inefficient investment, this relationship is not significant.