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The Impact of the Shareholding Ratio of the Firm's First Major Shareholder on Firm Performance——An Empirical Study Based on the Pharmaceutical Manufacturing Industry

Heyang Zhu


The shareholdings of listed companies in China are relatively concentrated, and the shareholding ratio of the first largest shareholder is generally high. A reasonable shareholding ratio is a prerequisite for listed companies to achieve their own performance improvement, capital stability and efficient corporate governance. And good corporate performance and corporate governance level are the intrinsic motivation to promote the continuous optimisation of shareholding ratio. A lot of literature has analysed the impact of the shareholding ratio of the largest shareholder on corporate performance and reached different conclusions. Based on the research process of empirical analysis, this paper mainly takes the pharmaceutical manufacturing industry under manufacturing industry as the research object, and selects its relevant data in the period of 2010-2021. On the basis of reviewing the relevant literatures, using Excel software and stata database, we start from the impact of the first major shareholder on the corporate governance structure, and study whether it has a significant impact on the company's performance. Firstly, descriptive statistics are performed on the samples according to the explanatory variables, interpreted variables and other control variables to explore the characteristics of the selected variables in the industry; secondly, correlation analyses are performed on the variables other than the interpreted variables to verify the accuracy of the hypotheses preliminarily, and multiple covariance tests are performed to ensure the relative accuracy of the regression to a certain extent. Finally, the results of the sample regression are analysed accordingly to determine the relationship between the explanatory variables and the explained variables, and the conclusion that the explanatory variables and the explained margins do have a statistically significant relationship is proved. Through the empirical research of the article, it is concluded that the proportion of shares held by the first largest shareholder has a significant contribution to the company's performance, and the increase in the proportion of shares held by the first largest shareholder is conducive to the improvement of the company's performance.


Largest Shareholder; Corporate Performance; Empirical Analysis

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DOI: http://dx.doi.org/10.18686/fm.v8i4.9477