Ownership Concentration, Nature of Property Rights and Performance of Manufacturing Enterprises

In the critical phase of expediting the transformation and modernization of China’s manufacturing sector, the sales revenue of the high-tech manufacturing industry will increase by 12.1% in 2025. At the same time, the capital market has fully implemented the registration reform, and it is necessary to explore the optimal path of corporate governance to raise the profile of manufacturing firms. Equity allocation is a key mechanism of corporate governance and an important aspect of corporate development. A sample of Chinese A-share manufacturing companies that were listed between 2018 and 2023 on the Shanghai and Shenzhen stock markets is chosen for this study. Regression studies are used to examine the relationship between equity concentration and firm performance, with a particular emphasis on how varied ownership affects performance in SOEs versus non-SOEs. The results show that ownership concentration would promote the performance of manufacturing enterprises. The nature of the firms results in variations in the impact. There are differences in the nature of the firms. Non-state-owned manufacturing enterprises show a more significant impact of stock concentration on firm performance than state-owned manufacturing firms. The results of this study can help listed manufacturing companies and policy makers to optimise the equity structure.