An Empirical Research On The Relationship Between Corporation Governance And Competitiveness

With the trend of economic globalization is remarkable day by day, the fiercemarket competition has become the biggest challenge to enterprises. The perfectcorporate governance is not only the core of the modern enterprise system, but also anecessary condition for enterprises to increase competitive power. Thus, thecompetitiveness of enterprises and corporate governance has becoming a popularresearch topic in today’s academic and business circles. Although the internalconnection between the two is already perceived by the public, based on thedocuments and files we collected, the two issues are researched separately. In themarket the enterprise competitiveness intuitive embodied in providing quality servicesand products, the effective using of the resources in the company to enhance theability to survive and develop. The efficiency of corporate governance and differentgovernance mechanism influence the efficiency of business owners and productionoperators directly, and hamper the accumulation, improvement and effective use ofenterprise’s capability, such as knowledge, technology, resource and so on. Andfinally it will result in the decline of enterprise competitive power. Therefore, fromthe root of the corporate governance, this paper is aimed at addressing a range ofissues effectively and enhancing the competitiveness. As for research method, througha lot of review and theoretical analysis, as well as the empirical variables regressionanalysis, this thesis goes into depth on the relationship between corporate governanceand enterprise competitiveness.In the section of theoretical review and analysis, by combing the exitingliterature, we sum the research achievement of the corporation governance andcompetitiveness and explore the links between them, respectively in three aspects ofdefinition, correlation theory and assessment system. According to the differentfunctions of governance structure, we investigate the enterprise competitiveness andits connection with stockholders’ meeting, director board and management.In the section of empirical test, this thesis utilizes the latest300companies of2012of Shanghai and Shenzhen to be samples, and takes the2007-2011corporategovernance data and report data as data sources. Then, by utilizing three means suchas description analysis, correlation analysis and regression analysis, we go into therelationship between corporate governance and corporate competitiveness. Through the empirical study, we find that:①the proportion of the independent director isinversely related to the enterprise competitive power;②the relationship between theOUTSHARE and the corporate competitiveness is U type nonlinear;③Theproportion of state-owned shares is positively related to the corporate competitiveness;④the combination of chairman and CEO has a negative effect on the enterprisecompetitiveness;⑤the incentive pay from management is positively related to thecorporate competitiveness.Lastly, the paper points out some problems of the governance of Chinese listedcompanies, proposes some suggestions and the deficiencies and areas forimprovement. We wish this thesis can provide useful help for future generations toresearch in corporate governance and enterprise competitiveness.