Study On The Evolvement Of Marketization Influences On Corporate Governance And Corporate Performance

China has been under the transformation from planned economy to marketeconomy since1978and has obtained recognized achievement. China’s corporategovernance exists in this particular market environment, the formation or selection ofgovernance mechanisms will be subject to the constraints of the institutionalenvironment. However, in many of the corporate governance literature, less dynamicprocess of China’s marketization process, the results appear great difference withChina’s capital market. This paper attempts to research the relationship between theevolvement of marketization and corporate governance and corporate performance.The main concern including: With the development of market economy, China’slisting corporate governance is gradually changes and improvement? The corporateperformance changes with the corporate governance?First of all, we quantify the level of corporate governance, and then we go onfurther study on the relationship between evolvement of marketization and corporategovernance and corporate performance. According to the theory, using the GMManalysis method to study the different degree of marketization, dynamic adjustment ofcorporate governance on corporate performance, and the speed of adjustment isquantified. The empirical results show: as the degree of marketization, China’s listingcorporation management level is improved, and through this upgrade accelerated risecorporate performance. At the same time, from the dynamic point of view, the processin the continuous improvement of the degree of China’s market, the listingcorporation performance is convergence to the optimal level in the specific factors ofproduction and organization mode: the higher the level of the market, the convergencespeed of adjustment performance more quickly; the faster improvement ofmarketization, convergence adjustment company performance and faster speed.Through the study we found the convergence speed of adjustment of corporateperformance is52.4%, which defines the realistic, positive and gradual reform.