Concentration, Balance, And Company Performance

This year is the 30^th anniversary of Chinese Reformation, and Chinese society has token place profound change during the past 30 years, especially the foundation of economy development - industry organization model, which is transferred from dispersed organization model to concentrated model.In this paper, using the datum of listed companies in 2005-2007, the author wants to provide the sustainment of experiment research for the change of organization model, then based on it, the author also puts forward some advice about government's policy. Therefore, based on literature review and theory analysis, the author has brought forward three hypotheses, and finally approved it through the method of Regression and Factor Analysis. The three hypotheses are: first, industry profit rate is positive correlation with concentration rate; second, "corporation performance" is positive correlation with its market share; third, the performance of corporations in different industry is negative correlation with its counterbalance degree.Based on the validation of the three-hypothesis, the author offers some advice: For industry development policy in the future, which are: first, increasing concentration rate to resist excess competition, and making society source effective used; second, breaking the equilibrium in every industry to boost effective competition, and inspiring corporation energy; third, fighting monopoly to protect moderate competition, and therefore advancing industry competition power and finally reinforcing Chinese compositive strength. For corporation development strategy, which are: corporation's road for development is only to improve synthetical strength and take part in competence roundly.