The Composition of Shares and Corporate Performance: Evidence from Shenzhen Stock Market

To check up the correlation between the composition of shares and the corporate performance, by means of non-linear and linear regression models and taking 331 listed companies in Shenzhen stock exchange as the object of survey. The empirical results show that there is a significant negatively correlation between PS and corporate performance because of the vacancy of state-owned shareholders. The legal shareholders possess enough incentives and capability to supervise managers, therefore there is a significant positively correlation between PL and LnAMBR. Whereas, there is a U-shaped curvilinear correlation between CROA and PL. The diversity of social public shareholders results in non-efficiency in corporate governance, thus there is a significant negatively correlation between PT and LnAMBR.