The Impact Of Company’s External Governance On Company’s Achievement

Firstly, this article has carried on the review of external governance theory.Meanwhile, through looking for a great number of document about the impact ofcompany’s external governance on company’s achievement, the writer states thegovernance mechanism of product market competition, the governance mechanism ofmanagers market competition, the governance mechanism of control power and thegovernance mechanism of stakeholders such as Creditors, external independent audit,government and so on which are inseparable with company’s achievement. Afteranalyzing the theory basis for the impact of company’s external governance on company’s achievement the article makes Assumptions about related research. Then the articlemakes the empirical test about related assumptions.Secondly, the data from594Shanghai and Shenzhen a-share manufacturing listedgoing concern companies are used from2009to2011in the article. Using weightedregression analysis method, the article performs tests on the impact of company’s externalgovernance and company’s achievement. After studying, the writer states that severalrelated governance mechanism have different impact on company’s achievement. Forinstance, the governance mechanism of product market competition could promote thecompany’s achievement; the governance mechanism of managers market competition andCreditors Present the phenomenon of negative correlation. The governance mechanism ofthe current control transfer and external independent audit cannot promote the company’sachievement effectively; The governance mechanism of government could only Play asupervision role, providing a healthy business environment for the enterprise and avoidingenterprise’s illegal actions.At last, the article put forward some suggestions to strengthen the external governancemechanism. For example perfecting the Market-oriented competition mechanism; makingreasonable creditor’s participation in governance mechanism; strengthening the externalaudit; intensifying government supervision and so on. The article provides a certainreference on the impact of company’s external governance on company’s achievement.