The Effect Of Policy Effectiveness On Corporate Performance In Commercial Health Insurance Market

New Structural Economics and the theory of state intervention doctrine point out that the government correcting market distortions is necessary and market force is closely related to government policies.The relationship between "effective market" and "promising government" has become an important direction in micro-analysis of economic theory of socialism with Chinese characteristics.The development of the insurance market has been improving for a long time.In the context of common prosperity and rural revitalization,the administrative mechanism and the market mechanism will continue to be deeply integrated in the field of supplementary medical insurance,and the dividends of commercial health insurance market policies will continue to be released.The role of the government and market behavior form a resultant force and the role of commercial health insurance in the multi-level hybrid social medical security system becomes increasingly important.China’s commercial health insurance market is facing the pressure of structural adjustment and transformation,but there are still problems such as mismatch between supply and demand and the lack of specialized policies.Researching on the relationship between commercial health insurance related policies,market structure and corporate performance is helpful in analyzing the problems which existing in the health insurance market from the middle-level,finding the link between government and market structure and micro-performance in the commercial health insurance market and providing suggestions for policy formulation and market structure adjustment from the supply side.The article sorts out the development process of relevant policies in the health insurance market,select the main policies for quantitative analysis of policy texts,and use the PMC index model to measure policy effectiveness.Manually collected data from 2009-2019 for 174 life and property insurance companies,and estimate market power based on a new empirical theory of industrial organization.Use return on assets as the performance indicator of corporates,and chose a fixed-effects model to study the effect of staged,sub-dimension,and weighted policy effectiveness on corporate performance.Based on the research on the impact of market power on corporate performance,the article conducts an empirical analysis of the mediating effect of market power.Do a heterogeneity analysis on the relationship between policy effectiveness and corporate performance,including the nature of company property rights,company size,and property and casualty insurance companies.The results indicate,health insurance policy effectiveness has a promoting effect on corporate performance,and the promotion effect is more obvious at a higher level of policy effectiveness,but the overall policy score is at a low level.Although the improvement of policy effectiveness inhibits the growth of market power and has a negative impact on corporate performance,the positive impact of policy effectiveness on corporate performance far exceeds the negative impact.Government can improve the comprehensiveness of policies by following the path of "emphasizing innovation,strengthening incentives,cross-industry,multi-aspect",and improve the depth of policies by clarifying plans,paying attention to details,clarifying rights and responsibilities,strengthening coordination,and increasing the comprehensiveness of nature of policies to promote effective competition.