Study On The Relationship Between Corporate Governance And Corporation Competitiveness

Nowadays, with the increasing economic globalization, all the enterprises can not avoid facing the fierce market competition. As the core of the modern-enterprise system, the perfect corporate governance is not only the important frame of modern-enterprise system but also necessary to strengthen corporate competitiveness. Therefore, the competitiveness of enterprises and corporate governance are a hot topic for both scholars and entrepreneurs. But according to the reference documents we collected, these two topics are studied separately. How to arrange the corporate governance mechanisms reasonably, solve the principle-agent problem, and improve the competitiveness of China's listed companies is our original purpose. We combine the experience and empirical research together, discuss the relationship between the corporation governance and competitiveness.In the part of the experience study, we mainly compare the corporate governance means of the United States, Japan and Germany, the three developed Western countries, to reveal their corporate governance's impact on the competitiveness. In the part of the empirical study, we have taken the companies which listed on the Shanghai and Shenzhen Stock Exchange as the sample, used the cross-section data of years 2006, by descriptive statistics and regression analysis methods to study the relationship between corporate governance and competitiveness. The empirical results show that: (1) both the meeting of the board and the size of the board have negative effect on the corporate profit; (2) the number of meetings of Board of Supervisors has a significant positive effect on the company solvency; (3) the top ten shareholders equity concentration has a positive effect on the company's operate ability; (4) the executive pay has a negative effect on the company's growth capacity. At last, this paper indicate some deficiencies of listed corporation's governance in China and puts forward some corresponding suggestions to improve them, which have significant reference to perfect corporate governance of Chinese listed company and its competitiveness.