A Research On Government Intervention, The Pyramid Structure And Corporate Performance

Government intervention in the enterprise has been a feature of recent research in the field, a large number of facts show that governments have a strong incentive not only in times of economic crisis on the strategic behavior within the power range of businesses under the jurisdiction of the intervention, which causes excessive investment and redundant More than employees of the phenomenon, but it is also an important factor in corporate strategic decision making executives at the norm.This paper fully exploits the role of the pyramid structure between the government and enterprises, and analyzes the effects of different levels of the pyramid structure of government intervention in business, as well as government intervention and pyramid hierarchy "isolate" the role of the enterprise Two senior managers strategic decision logic- the logic of administrative and economic logic. By this logic, the formation mechanism of the two analyzed in-depth analysis of the different logic, strategic decision-making state-owned enterprises- overinvestment and redundant employees in different directions on the performance of state-owned enterprises, to varying degrees. The basic idea is that the logic of the study: in the meet, "legality" requirement, the government will intervene in business activities of enterprises, but different levels of the pyramid of state-owned enterprises, the cost of government intervention and therefore different interventions are not the same capacity, low levels of the pyramid, strong government intervention capacity to the strategic behavior of enterprises(mainly referring employee scale investment behavior of enterprises and companies) to plan corporate executives will be starting from a logical point of administration, high levels of the pyramid, the government’s weak capacity to intervene, business executives will come from the perspective of the economic logic of strategic behavior of enterprises planning, performance management logic different companies will have different effects.Results of this study showed that there were state-owned enterprises of different levels of different business logic of the pyramid, the lower levels of the pyramid, the role of strong government intervention, administrative logic dominates; the higher levels of the pyramid, government intervention is weak, the dominant economic logic. Specific performance is, the lower the corporate pyramid level, over-investment will reduce corporate performance, and higher levels of corporate pyramids, over-investment will increase business performance; redundant employees will have a negative impact on corporate performance, because of the different levels of the pyramid business Redundant power management efficiency of employees resulting from the different weights, corporate performance will produce different effects: the lower the level, low weight management efficiency, redundant employees less impact on business performance, the higher the level, the high weight management efficiency, redundant More than big impact on business performance of employees; corporate pyramid hierarchy cannot increase indefinitely, which would greatly increase the cost of business agents, so as to increase the enterprise-level pyramid, overinvestment and redundant employees cannot judge performance of a firm.