The Study On The Affection Of The Property Rights And Competition Position To Performance Of The Company Based On Complete Market

Since the reform and opening up, China has undergone the transition period from a planned economy to a market economy. After dozens of years of hard work, China’s market economy had achieved a higher level. Large quantities of private ownership of enterprises has a greater degree on activating commodity markets and the competition between them has become increasingly fierce. China’s market has gradually developed into three types which are state-owned, private and foreign-funded enterprises.It is understandable that state-owned enterprises rely on the concession rights with the public nature that government departments give. However, by natural monopoly obtained,these companies profiteer, which has seriously hampered the normal operation of market competition mechanism. To a large scale, it hinders the normal economic operation,to a small scale, it affects a business performance of the company.Company performance is a long-term or even long-lasting goal of the company, but the existing empirical researches do not give sufficient evidence of this effect about whether the property rights and competition position affect performance of the company and how to affect. This paper put2008-2011A-share listed companies as samples to test the interaction between company’s property and company’s competitive position to performance of the company We find that the stronger firm’s competitive position is, the better performance of the company is. Compared with state-owned enterprises, private enterprises’ competitive position has greater positive impact on company performance. It means that private enterprises enhance better effect about performance of the company by improving the competitive position of the industry. In addition, the paper also considers the mentioned conclusion’s differences between regulated industries and non-regulated industry. The results show that compared to regulated industries, non-regulated industries represent more situations about private enterprises enhancing better company’s competitive position than state-owned enterprises.In summary, the conclusions provide a reference not only for investors and regulators to understand correctly the competitiveness of enterprises of different nature of property rights, but also for enterprises of different nature of property rights to formulate the strategies of competition in industries of different degrees of control. This article designs the market environment as a rational and complete market. Although it is inconsistent with reality, it can eliminate the interference of other factors and accurately verify ownership and competition’s impact on company performance.