The Relationship between the Factors of the Ownership Structure and the Earnings Per Share

Abstract

The 100 listed companies were selected randomly in 2008 in the Shanghai Stock Exchange. The two linear independent factor 1 and factor 2 were extracted through analyzing the top ten shareholders of the 100 listed companies. At the same time the 100 listed companies two factors scores o were computed. The two factors were divided into the larger classes and the smaller classes according to the two factors scores order. The earnings per share were divided into the larger class and the smaller class in accordance with the earnings per share rank. The log-linear model was established by the two factors as the independent variables and the earnings per share as the dependent variable. Finally three variables were done as the single factor multivariate covariance analysis. The factor 1 was significant on the earnings per share. But the factor 2 and the interaction of the rank factor1 and the factor 2 were not significant on the earnings per share. Key words: the log-linear model; the covariance analysis; the ownership structure; the factor; the earnings per share