Research On The Relationships Between Financial Competitiveness And Corporate Governance

The environment companies depend on is changing dramatically with development of Chinese market economy and the mature of stock market, while the competitiveness enterprises facing are more intense. If the enterprises want to survive and develop, they need enhance the competitiveness, especially the financial competitiveness. The domestic and international business practice also shows that corporate governance is a decisive factor for the business to maintain sustainable competitive advantage. So this article combines corporate governance and corporate financial competitiveness and researches the relationship between corporate governance and financial competitiveness has great significance.The article describes the concept of corporate financial competitiveness and characteristics and gives the evaluation index system of financial competitiveness from four dimensions such as the company's solvency, profitability, operating capabilities and ability to grow firstly. On the second, the article describes how the corporate governance influences the financial competitiveness from four dimensions such as ownership structure, board of directors and supervisors and executives incentives. Thirdly, the article establishes theory models about the relationship between corporate governance and corporate financial competitiveness and verifies the research hypotheses using manufacturing listed companies'data from 2006-2008 as the sample.Through the descriptive statistical analysis, factor analysis, correlation analysis and multiple linear regression model analysis, the empirical results show that corporate governance has a important impact on financial competitiveness in our county: the proportion of the largest shareholders has a negative influence on corporate financial competitiveness; the proportion of shareholders from 2 to 10 has a positive influence on the corporate financial competitiveness; the proportion of corporate shareholders has a positive influence on the corporate financial competitiveness; the proportion of outstanding shareholders has a negative influence on corporate financial competitiveness; CEO duality has a negative influence on corporate financial competitiveness; salary incentives of senior management has a positive influence on the corporate financial competitiveness. In short, the empirical analysis is not only verifies the reasonableness of the model in this article and most of the research hypotheses, which are good references to improve the corporate financial competitiveness of listed companies, but also enriches the corporate governance competitiveness theory and corporate financial competitiveness theory.