నైరూప్య

The ultimate ownership structure and cost of equity

YIN Lin-hui

The paper adopts the listed companies in Shanghai and Shenzhen from 2004 to 2013 as the research samples, and explores and analyzes the influence of the nature of ultimate ownership, the separation of ultimate ownership and controlling right of ultimate controlling shareholder on cost of equity and the significance difference of correlation between separation degree of ownership and controlling rightand cost of equity under different natures of ultimate ownership. The research results show that: 1) compared with cost of equity of non-state-owned holding companies, that of state-owned holding companies shows no significant difference; 2) there exists a significant positive correlation between separation degree of ownership and controlling right and cost of equity; 3) compared with the positive correlation between separation degree of ownership and controlling right and cost of equity of state-owned holding companies, that of nonstate- owned holding companies is more significant.