Empirical Study On Corporate Governance Core Competitiveness Right

Since China’s accession to WTO, the domestic enterprises are facing increasing competitive pressure, not only competition from domestic firms, as well as the impact of foreign markets. In order to survive and develop in the fierce competition market, the enterprises must rely on strong market competitiveness, especially the core competitiveness. As the core of the modern enterprise system, corporate governance can prompt the owners and operators to carry out their duties, and service to maximize the value for the company together, which affect the company’s core competitiveness ultimately. This paper is from the point of view of corporate governance, to study how to improve the corporate governance structure to enhance enterprise competitiveness.It is with great theoretical and practical significance.This paper integrates lots of theories, such as economics, management science, and statistics and so on. It also combines the theoretical analysis and empirical analysis. Based on the documents of the relationship between the corporate governance and core competitiveness, this paper does the elaborate analysis and explanation about the core competitiveness based on corporate governance. In the aspect of theory, this paper introduces the research background and significance; systematically review the research status at home and overseas at first. Then it clarifies the concepts and the theoretical basis from corporate governance and core competitiveness point independently. In the empirical study, it selects cross-sectional data from Communication and equipment manufacturing industry, calculating each company’s core competitive score as dependent variable in the research modal. In order to know the core competitive score we must use factor analysis to strike principal component factor affecting core competitiveness and combine with each contribution of variance. In consideration of the company’s external governance structure’s complexity, the paper builds models about the relationship between the corporate governance structure and core competitiveness only from four angles (ownership structure, board of directors, supervisory board and management). Through descriptive statics, correlation analysis, regression analysis with the model, we can found that corporate governance structure does affect the core competitiveness. With the different angels, model’s significances and effects are not the same. This paper combines the conclusions of the empirical analysis and quoted company’s status, present recommendations to improve the governance structure of quoted company in China and to enhance the core competitiveness of enterprises. This study lies in the selection of indicators is not comprehensive enough, and only select a single industry’s data for the past three years’ sectional data, and therefore it maybe have overlooked the impact of year-to-year, certain subjective factors of variable selection. This writer hopes that future research in this area can be more comprehensive in the selection of samples and variables.