Empirical Analysis Of The Factors Affecting The Performance Of China’s Listed Companies

Along with deep opening to the world and global economic integration, China’s listed companies are bearing more fierce competitions. The listed companies have to give priority to the construction of internal elements to win the competition, which will enhance its competitive soft strength and improve its ability to react to market changes. All these contribute to the company’s performance and realization of the sustainable development in the future. In this paper, we will investigate the company’s performance from the impacts of system innovation, technological innovation and human capital in order to propose some customized suggestions upon company’s internal constructions, performance improvement and future development strategies.Section 1 introduces the significance of this research and reviews the literature associated with system innovation, technology innovation and human capital. The contents, ideas and innovations of this paper is also proposed based on the analysis of related literature.Section 2 traces the institutional innovation, technological innovation and human capital. The associated theories are surveyed and the relationships between them are analyzed in details.Section 3 investigates the problems existing in China’s listed companies from three aspects of institutional innovation, technological innovation and human capital, which aims to set up a panel data regression model to put forward some customized suggestions based on the results of the model.In Section 4, six factors affecting the company’s performance are selected around three aspects of institutional innovation, technological innovation and human capital, and 47 listed companies in Shanghai and Shenzhen stock exchanges are chosen from the leading enterprises in a variety of industries. We establish a panel data regression model based on the data from 2009 to 2014 to analyze the influences of these factors upon the performance of listed companies. We also compare the different influences between industries.In Section 5, based on the results of the panel data model, some suggestions are put forward from three aspects to improve the company’s performance and keep sustainable development, i.e., reforming the equity structure of listed companies, perfecting the independent director system and creating a good environment for technology innovation; broadening the financing channels and optimizing the input-output ratio so as to strengthen the technology innovation; promoting the education reform, delivering the job training and making further efforts to perfect the education system in our country.