The Influences Of Corporate Governance And Market Competition On Corporate Performance Of Strategic Emerging Industries

The global economy has ushered in a new round of technological revolution and industrial transform in the post-crisis era, China’s economic development has gradually entered the new normal as well. In the complex domestic and international economic and social environment,China has put forward the strategies of economic development transform,innovation-driven development and the ten year plans of China’s manufacture industry. The development of strategic emerging industry can not only drive the growth of related industries, but also lead China’s economic transform and sustainable development. This paper analyzes the influencing factors of corporate performance in strategic emerging industry from perspectives of governance and competition. Based on literature analysis, most of previous studies thought that some of the factors governance, competition, property and subsidy have impact on the corporate performance of strategic emerging industry. The research based on perspectives of governance and competition to consider all the four factors’ influence relations on corporate performance in the strategic emerging industry has not yet been done. Therefore, the topic of this article has a certain creativity and theoretical significance.This paper attaches more importance to analyze the impact mechanisms of both corporate governance and market competition on corporate performance of the strategic emerging industry, and the impact relations of corporate, competition, property and subsidy on it. In theory mechanism analysis, firstly, the game theory is been used to make mathematical analysis for the agency problems under a duopoly price competition. The equilibrium price and output are obtained under equilibrium condition of product market, so are the equilibrium profits and excitation level. By adjusting the excitation level the capital ownerscontrol the marginal cost of product so as to alleviating agency problems.So hypothesis has been proposed as follows. Rewarding the agent can help to improve the corporate performance of strategic emerging industry.Equity constraints and complex corporate governance structure are not conducive to the promotion of corporate performance of this industry.Secondly, the calculus method has been used in the mathematical analysis of product heterogeneity. So we have got the causes of corporate performance determine coming from the product heterogeneity under the conditions of market equilibrium. The product heterogeneity affected by marginal costs and subsidy rates has an effect of U-shaped relation on the corporate performance. In the empirical analysis, through rigorous mathematical derivation and statistical test, we has obtained the empirical model. We also make regression analysis on the panel data of the listed company in China’s strategic emerging industry by Stata software. The results show that the executive compensation and ownership concentration have positive impacts on corporate performance, that the number of board members has a negative impact on corporate performance, that the market competition has an effect of U-shaped relation on corporate performance. Additionally, the market competition can enhance the influences of executive compensation, equity constraint and the complexity of corporate governance structure on corporate governance. Furthermore, the nature of the property has a significant positive impact on corporate performance. And government tax return has a significant negative impact on corporate performance.