Research On The Impact Mechanism Of Participation In Standard Setting On Corporate Financial Performanc

With the competition for product technical standards becoming a new means for enterprises to gain industry advantages,more and more enterprises adopt technical standards to formulate strategies to build core competitive advantages.In recent years,China has begun to emphasize the importance of standard competition.The government strongly supports enterprises to actively participate in the formulation of technical standards and lists technical standardization as an important strategy to promote the development of strategic emerging industries.In this context,the promotion of standardization process puts forward an urgent need for theoretical research.Many scholars have theoretically analyzed the benefits of enterprises’ participation in standard setting,and some empirical studies have also proved the positive correlation between standard setting and enterprise performance.However,it is not clear how to improve the financial performance through enterprise participation in standard setting.Therefore,this paper puts forward a possible way for enterprises to participate in standard setting to improve financial performance,that is,to improve financial performance by improving the innovation ability of enterprises,and makes empirical research and case analysis.In the empirical part,this paper uses the data from the national standard information public service platform,the national Taian database and other sources to make a regression study on the data of China manufacturing listed companies from 2014 to 2018,and finds that:(1)participation in standard setting can significantly improve the financial performance of enterprises;(2)Participating in standard setting can improve financial performance by improving the innovation ability of enterprises;(3)Large-scale enterprises and enterprises in the late stage of life cycle(such as recession)can make better use of the advantages brought by standard setting.In the case part,this paper studies Zhuhai Gree Electric Co.,Ltd.by using data from Gree Electric Annual Report,Richard Almond website and other sources,and finds that:(1)Gree has improved its financial performance by participating in standard setting;(2)Gree’s participation in standard setting can improve financial performance by improving the innovation ability of enterprises;(3)Gree’s participation in standard setting can also improve product competitiveness,brand value,customer satisfaction and quality management,and these advantages also promote performance improvement.Based on the above research conclusions,this paper puts forward corresponding countermeasures and suggestions for enterprises and governments.For enterprises,especially large-scale enterprises and enterprises in recession,they should attach importance to the promotion of their own financial performance by standard setting,actively participate in standard setting,exchange and learn with many parties in the process of making standards,and at the same time grasp the time advantage and technology conversion cost advantage to increase innovation output.For the government,it should cooperate with all parties to form a state-led standard-setting alliance and a standard innovation research base.You can also reward the lead drafting unit,encourage it to guide industry norms,and take special tax deduction and special subsidies for small-scale enterprises,so as to mobilize enthusiasm.