Study On The Relationship Between Economic Trasition,Business Strategy,Corporate Governance And Corporate Performance Of China's Listed Energy Companies

After 2010,the global economic recovery is slowing and China gets into the “New Noarmal” economy.Due to the overcapacity and product backlog,China steps into a period of economic transition.At the same time,facing on the climate change and environmental pollution,the Chinese government has taken some measures to bring some innovation to China's energy sector.In recent years,the performance of China's energy listed companies continues to decline.Energy firms are in need of some effective ways to improve the performance.However,apart from the external environment,the company's internal environment,which includes business model,governance structure and management constitute,is also quite different due to the different development,market structure and strategic positioning.These differences can be reflected in the companies' performance directly.Although scholars have been conducted a lot of research on the relevant issues,theres are few studies on China's energy companies.The study which takes the difference between the energy sectors into consideration is rare.In view of the importance of energy companies to Chinese economy and the capital market,it's very necessary to study the relationship between the external and internal environment and China's energy listed companies' performance.The study is helpful to the finding of effective ways to improve energy firms' performance and the development of China's energy sector.Based on the analytical framework of corporate organizational environment,the paper divides firms' developing environment into external and internal organizational environment.The paper studies on the relationship between economic and policy environment,business strategy,corporate governance and the performance of China's listed energy companies and the differences in the relationships between conventional and renewable energy firms.Firstly,the study defines the objects and summaries the current developing situation of China's coal,oil,wind power and solar power sectors.Secondly,based on the impacts of economic environment,the paper analyzes the differences in the performance changes between conventional and renewable energy firms after Chinese economic transition.Furthermore,in view of business strategy,the paper verifies the relationship between industrial diversification,related industrial diversification,international diversification and the performance of China's listed energy companies.Subsequently,from the perspective of corporate governance,the paper studies the impacts of the equity governance,board governance,management incentives and senior executives' human capital on the performance of China's listed energy firms.Finally,based on the paper's analysis,the paper proposes some approaches to improve the performance of China's listed energy firms.This study showed that: Firstly,the differences of the impacts of economic situations are determined by the structures of China's energy supply and demand and the performance of China's energy firms is sensitive to the sectoral policies after economic transition.Secondly,industrial diversification will damage the value of China's energy listed firms,but related industrial diversification is more beneficial to energy firms than unrelated industrial diversification.Thirdly,the concentrated ownership structure is more suitable for traditional energy companies.But,the empirical results does not show the roles of the board and incentive mechanism.Fourthly,the proportion of highly educated and female executives is helpful to improve China's energy companies' performance,but the female exectives from the trade unions,the League Committee and logistics sector will damage the company's value.