This study period is from 1998 to 2007. The study is aimed at exploring the correlation of government shareholding and corporate value and performance with the viewpoint of shareholder structure and panel threshold effect. We hope the conclusions of the study help government decide how to sell its shares in privatized enterprises. Besides, it is useful for government shareholdings management to increase national treasury revenue. The empirical results are as follows. (1) When the government holds the percentage of shares to be smaller than or to be equal to 11.51%, the effect of government shareholding on corporate value is found to be negative. (2) When the government holds the percentage of shares to be located between 11.51% and 17.13%, the effect of government shareholding on corporate value is found to be positive. (3) When the government holds the percentage of shares to be bigger than 17.13%, the effect of government shareholding on corporate value is found to be negative.