THE ANALYSIS OF THE RELEVANCE BETWEEN THE EQUITY STRUCTURE OF LIST COMPANIES AND FINANCIAL RISKS

Abstract

The Listed companies’ financial risks are closely related to the shareholding structure. The shareholding system of Chinese companies is different from other countries. This paper mainly studies the financial risks through three aspects of the equity structure (the nature of the equity, the concentration of equity and the proportion of shares held by senior managers). Researchers use quantitative research and analysis of secondary data to complete the research. In this paper, there are five independent variables (the proportion of state-owned shares, the proportion of legal person shares, the proportion of tradable shares, the degree of equity concentration, the proportion of shares held by senior managers) and the dependent variable (the level of financial risk). Using assumptions and multiple regression to analyze the impact of state-owned shares, legal person shares, tradable shares, equity concentration, and senior managers’ shareholding on the level of financial risk.