The Impact Of Corporate Governance On Company Competitive Performance

Competitiveness is the ability of enterprises to create and realize value,and corporate governance provides internal support for such essential capacity.Corporate governance and corporate competitiveness regard corporate as the main research object.The key of corporate governance,is how to coordinates the benefit among stake-holders through a set of system or mechanism includes official or unorthodox,internal or exterior,to make decision scientifically.In the fierce market competition,the competitiveness of enterprises can effectively integrate and optimize a variety of resources and establish their own comparative advantages to enable enterprises to obtain the ability to survive and develop continuously.Different governance structures and governance mechanisms affect the accumulation;improvement and effective use of critical resources through affecting enthusiasm key resource owners,thus it ultimately affects the competitiveness of enterprises.Therefore,the study of impact of corporate governance on the relationship between competitiveness,exploration of how to improve the corporate governance structure to enhance enterprise competitiveness is of great theoretical and practical significance.This paper studies the influence of corporate governance on the competitiveness of insurance companies from the perspective of corporate governance.Firstly,this thesis evaluates the competitiveness of Chinese insurance companies from the four dimensions of market competitiveness,operational competitiveness,cost competitiveness and competitiveness by structural equation model.Secondly,according to the results of governance and governance level of China's insurance company,we evaluate the corporate governance.Thirdly,based on the results of insurance company corporate governance and evaluation of competitiveness,this paper uses empirical analysis to test the impact of corporate governance index on insurance company competitive performance.Finally,it analyzes the influence of the specific elements of corporate governance on the competitiveness of insurance companies.The study finds that insurance company governance does not significantly affect the competitiveness of insurance companies,but there is still some corporate governance sub-index and governance elements can effectively improve the competitiveness of insurance companies.Among them,the internal and external audit sub-index and external supervision sub-index can have a positive impact on China's insurance companies,which plays an important role in the corporate governance effect.Besides,the number of shareholders meeting,the number of board meetings,the size of the board,the proportion of the largest shareholder and the size of the board of supervisors play a significant effect on the competitiveness of the insurance company.Meanwhile,the form of the organization,the capital nature and the type of insurance are important factors affecting the competitiveness of the insurance companies.Finally,based on the conclusion of the study,the paper puts forward the suggestions to improve the competitiveness of China's insurance companies and the prospect of future research.