Research On Influence Of External Governance Environment On Enterprise Performance

Enterprise performance has been a research hot spot problem for a long time and launched extensive and in-depth study by scholars at home and abroad. Previous scholars, however, the study of enterprise performance focuses on from the corporate governance structure, including ownership structure, board of directors and the executive incentive system, thus ignore the influence of corporate external governance environment. Enterprise’s actual business activities are conducted in certain external governance environment, in this case, the external governance environment will inevitably impact on enterprise performance. China is a large country, and external governance environment there is a certain difference, then, the area between the differences of external governance environment how to affect business performance, has become the urgent problem need to be solved.Combined with the current special background of economic transition in China, this paper takes2006-2011Shanghai and Shenzhen a-share listed companies9193samples of two cities as the research object, considering the differences between industries, proposed the use of principal component analysis to assess business performance of listed companies in China, then using OLS regression test in different parts of the external governance environment’s impact on business performance.The results show that:(1) The enterprise operating performance of listed companies in China there exists a significant difference, and in different parts of the external governance environment, including the degree of marketization, the degree of government intervention, financial development level and the rule of law also there is a larger gap.(2) The external governance environment factors significantly affect the business performance of listed companies. High degree of marketization of region, and the performance of enterprise level is higher; High degree of government intervention in the region, the low level of enterprise performance; Of high regional financial development level, the enterprise’s performance level is higher; Higher levels of area under the rule of law, enterprise performance level is higher.