The Relationship Between Executive Reputation, Market Power And Corporate Growth

Executive reputation is an important part of the social capital of enterprises and thecore competitiveness, which is invisible medium helping enterprises achieve exchangewith product market and capital market. In the times with increasingly expansion ofinformation which is difficult to distinguish true and false, people will see executivereputation as enterprise’s "invisible guarantee", therefore, executive reputation is good orbad will directly affect the internal and external personnel evaluation of the enterprises,and it will also affect their choices in a certain extent. Good executive reputation will givethe internal staff, external consumers, investors trust feeling. From the angle of maximumbenefits, these internal and external people will choose to support executives, supportenterprises, the most intuitive manifestation is the product sales increasing, market shareexpanding, foreign capital increasing, staff morale rising, enterprise growth speeding up.Judging from the current situation, carrying the executive reputation as a corecompetitiveness of the enterprise on the discussion, literature researching on seniormanagement’s reputation how to promote the enterprise market forces and the growthin-depth is not more. In this context, this paper has studied the relationship betweenexecutive reputation, market power and corporate growth making full use of the principalcomponent analysis method and panel regression analysis method and so on, whose arebased on the panel data of durable consumer goods industry from2002to2011.This paper is divided into five parts. The first part is the introduction, mainlyintroduces background and significance, the research content and research methods andinnovation of this article. The second part is the literature review, mainly introduces thedomestic and foreign research related with the topic, these studies focused on three aspects,respectively are the executive reputation and business performance, executive reputationand the development of enterprises, the development of market forces and the enterpriseperformance, the development of enterprises. The third part is the research hypothesis andmodel design, including the research hypotheses, selection of sample and data sources,research design and model design variables. The fourth part is the empirical analysis,including descriptive statistics, single variable analysis and regression analysis, and theresults of the analysis were discussed, mainly studies on relationship between executivereputation and market power, relationship between executive reputation and corporategrowth, relationship between market power and corporate growth, and then the paper focuses on the executive reputation signal transfer mechanism and incentive mechanism,executive reputation barrier, on the base of those, the paper has studied the regulatingeffect of property rights and executive reputation in relationship between market powerand corporate growth. The fifth part the conclusion and policy suggestions.The results show that the better executive reputation is, the better the market powerand corporate growth will be. Market power have a positive effect on corporate growth,which is more significant in those enterprises whose executive reputation is at a low level.When executive reputation accumulated to a certain extent, this effect will tend to be gentle.But it can still bring the positive influence, the research shows that enterprises should paymore attention to the signal transduction mechanism, incentive mechanism and barrierfunction of executive reputation to cultivate and maintain executive reputation. At the sametime, we also find that promoting effect private enterprise’s market power have oncorporate growth was stronger than that of state owned enterprises. In the lower level ofthe reputation, promoting effect private enterprise’s market power have on corporategrowth was stronger than that of state owned enterprises. The full realization of theseparation between government and enterprises, the implementation of the scientific andeffective evaluation for state-owned enterprise executives has become very important.