The Relationship between the Factors of the Ownership Structure and the ROE

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 two factors scores of the 100 listed companies were computed. The two factors were divided into the larger classes and the smaller classes according to the order of the scores of the two factors. The ROE were divided into the larger class and the smaller class in accordance with the rank of the ROE. The log-linear model was established by the two factors as the independent variables and the ROE as the dependent variable. Finally the three variables were done as the single factor multivariate analysis of covariance. The factor 1 and the factor 2 are significant on the ROE. But the interaction of the factor 1 and the factor 2 is not significant on ROE.