Ownership structure and firm value: evidence from growth enterprise market (GEM) of Shenzhen stock exchange

The purpose of the study is to investigate the relationship between ownership structure (ownership concentration and managerial ownership) and firm value through the evidence of the Growth Enterprise Market (GEM) of Shenzhen Stock Exchange (SZSE)
over the past 5 years period from 2013 to 2017. The yearly data is collected from the China Stock Market & Accounting Research (CSMAR) Database and SZSE. Through a series of analysis, the multiple linear regression analysis is found to be the most appropriate. In order to examine the nonlinear relationship between the ownership structure and firm value, this study uses different models and introduces the quadratic terms on independent variables. The findings show there is an inverted U-shaped relationship between ownership structure and firm value of the GEM companies. There is no obvious relationship between the managerial ownership and firm value. Meanwhile, the firm size has a significant negative impact on firm value.