Effect Of Changes Of National Governance On Corporate Performance

The Third Plenary Session of Eighteenth Central Committee put forward "Promoting the modernization of national governance systems and governance" then Governance has become a hot issue of common concern from the community. Govemance,as a new idea,guides public management practices to seek a social system which use all of forces and resources to achieve "good governance" as well as put emphasis on cooperation and interaction between the government, society and the market. Since the 1990s,Western political scientists, economists and sociologists adopt normative research paradigm elaborated the concept, connotation, extension and mechanisms of governance and so on at the theoretical level. After the Third Plenary Session of Eighteenth Central Committee,Chinese scholars focused on the connotation of national governance,background and characteristics of modernization of national governance, difficult and route choice and other aspects of propulsion of modern governance.Also at the theoretical level. The literature that use empirical studies to explore the effect of modernization of governance on micro-enterprise is very rare. Therefore, this paper makes up the deficiencies of the prior paper and choose liquor industry, automotive industry, tourism industry and high-end catering industry of the listed companies that closely linked to the Three Public Expenses as samples. In order to test transmission effect of changes of national governance on corporates that closely linked to the Three Public Expenses at the aspects of market and financial performance.The main conclusions as follows:before and after the introduction of "Eight provisions" in the short-term observation window,listed companies,closely linked to the Three Public Expenses,showed a significant negative wealth effect. In addition, the more the market environment rely on the Three Public Expenses, the more serious the negative wealth effect is. And Compared with private enterprises,the negative wealth effect of state-owned enterprises was more serious.In addition to market performance, the financial performance of the samples is also heavily influenced by the adjustment of system of national governance.In the short term after the introduction of "Eight Rules", the financial performance of the samples shows overall decline. In addition, the more the market environment rely on the Three Public Expenses, the greater the degree of decline is. Compared with private enterprises, state-owned enterprises showed a greater the degree of decline.The intrduction of "Eight rule",as the representative of the National Governance Changing,brought in initial effective results reduced the government expenditure for the Three Public Expenses. Played a role in promoting austerity, fairness and honesty of the social atmosphere.