International Energy Price Volatility, Corporate Governance And Corporate Performance

In recent years,under the multiple influences of political and military instability in major international energy producing areas and the success of the shale gas revolution in the United States,international energy prices have undergone drastic fluctuations,which have affected many aspects of China’s economy.At the same time,corporate governance has gained considerable development in recent years,and many companies regard corporate governance as a powerful measure to improve business performance.In order to explore whether corporate governance can play its role when companies are faced with external environmental fluctuations,this paper takes listed companies in China’s energy industry as an example to study whether corporate governance can improve business performance under the background of international energy price fluctuations.This paper uses empirical research to explore the moderating role of corporate governance in the impact of international energy price fluctuations on corporate financial performance,and finds that international energy price fluctuations have a negative impact on the performance of listed companies in China’s energy industry.The negative impact of energy price fluctuation on corporate performance can be weakened by increasing ownership concentration,equity incentive level and proportion of independent directors.At the same time,this paper also selected Sinopec as the case study object,and carried out a specific case study on it to verify the results of the empirical analysis.Finally,this paper concludes that listed companies in China’s energy industry should increase ownership concentration,executive shareholding ratio and proportion of independent directors to cope with the impact of international energy price fluctuations.