X. F. Du et al.
research. As state-owned shareholding structure reflects the company risk taking and mechanism of profit allo-
cation. There are closely related relationship between ownership structure and corporate value. But so far, there
is no clear consistent result between ownership structure and firm performance in historical documents. Demsetz
and Lehn [1] studied 511 large U.S. companies, found that there is not relevant between ownership concentra-
tion and firm performance (ROE). However , th e research of McConnel and Servaes [2] showed that there was a
non-linear relationship between ownership structure and corporate performance. Through analysis of existing
research literature, we found that there were no unified empirical results between ownership structure and firm
performance. The main reason for this result was that the measures of corporate performance were different.
Corporate performance indicators using different study on the same issue ma y g et different results. Therefore, a
more scientific performance measures will be essential conclusions of the study. In this paper we use the DEA
method to measure corporate performance, hoping to get closer to the objective facts of the conclusions.
2. Data Sources and Research Ideas
2.1. Data Sources
This data come from CSMAR database, we had chosen annual financial data of the state-owned enterprise in
Sichuan from 2006 to 2009. In order to maintain a consistent time, we excluded the enterprise that mis s data,
and eventually collected 48 samples.
2.2. Research Ideas
2.2.1 Index Selection
The estimation methods of corporate performance are many. In this paper, the internationally popular business
performance evaluation method-DEA method was used. DEA method is one of many methods of enterprise
performance evaluation that is widely accepted. For fur ther information about the DEA method, see Banker,
Charnes and Cooper [3], Chames, Cooper and Rhodes [4], Pekka and Luptacik [5], An dersen and Petersen [6]
etc. When using DEA method, you need to set the input and output indicators. In this paper, we select as-
set-liability ratio, total assets and employee benefits payable as input indicators, and select total revenue, gross
profit and net profit, etc., as output indicator.
Ownersh ip concentration is the common indicators of concentration of corporate equity. In this paper, the
Herfindahl index is used to measure the degree of ownership concentration, the j-th enterprise ownership con-
centration is expressed as follows:
where, sij means the share what i-th equity owners in the j-th firm has. The higher Herfindahl index shows that
the more concentrated corporate equity. Hou and Robinson [7] found that the Herfindahl index which was cal-
culated by the company’s total assets, book value and net sales were highly consistent (correlation coefficient
above 0.9). Therefore, in this paper, we only used the company’s total assets to compute industry concentration
index. In addition to ownership concentration, the proportio n of state enterprises, the proportion of corporate
shares and the proportion of outstanding shares are closely related with corporate performance. This article will
examine the relation between these factors and firm performance. According to the research of Morck and Ma-
connell, the geari n g ratio (DAR), net profit growth (GROW ) and company size (SIZE) impact on corporate per-
formance. In this paper, we used the three indicators as control variables. We used the company’s net profit
growth as the company’s grow th targets, and used the natural logarithm of the total revenue as the scale of indi-
cators.
2.2.2. Research Ideas
First, use super-efficient DEA method to calculate the value of enterprise performance;
Second, examine the relationship between ownership concentration and firm performance. Use panel data re-
gression model to estimate and test the relationship between ownership concentration and firm performance.
Specific regression model is:
1 23
++++ +
itii ititititit
DEA aHGROWSIZEDAR
βλλλ ε
=
(1)
