Empirical Study On Relationship Between Market Structure,Enterprise Efficiency And Performance Of China's Power Generation Industry

The power generation industry is an extremely important part of the power industry.Many scholars have researched and proved that the growth of power consumption has a certain pulling effect on economic growth.Before the reform of the power industry system.China's power generation industry had been a highly monopolized industry for a long time.In the 1970s,European countries such as Britain and the United States took the lead in opening up the reform of the power system and achieved significant results,which greatly improved the efficiency of power generation enterprises.Drawing on foreign useful experience and combining with China's actual situation,China's electric power industry has also adopted a series of reform measures,introduced a competition mechanism,broke the original highly monopoly structure of the power generation industry,and greatly reduced market concentration.However,in a comprehensive view,the profit level of China's power generation enterprises is not high.which is not conducive to increasing the production enthusiasm of power generation enterprises to a certain extent.According to the theory of industrial organization,there is a certain correlation between market structure and corporate performance.The schools that have studied this relationship in depth include the Harvard School and the Chicago School.The Harvard school proposed the traditional SCP paradigm.The main point of view of this school is that a highly concentrated market helps improve corporate performance,because in this market structure there may be corporate conspiracy and corporate behavior.Through price control and advertising investment Such measures as suppressing other companies,weakening the degree of free competition in the market,and thus gaining monopoly profits are the "conspiracy hypotheses" of the Harvard school.Another well-known hypothesis is the "corporate efficiency-structure" hypothesis proposed by the Chicago School.The school's main point of view is very different from that of the Harvard school.They believe that the long-term existence of high profit margins in the market is not due to monopoly forces damaging competition.It is because large companies in high-concentration markets have high corporate efficiency.This high corporate efficiency enables companies to expand and gain higher market share,which in turn leads to increased market concentration,which means that corporate efficiency affects the market.Structure in turn has a positive impact on corporate performance.This is the "firm efficiency-structure" hypothesis.In order to verify whether the corporate performance level of power generation companies is affected by market concentration or corporate efficiency,this article selected 60 listed power generation companies from 2011 to 2018 to conduct empirical analysis and verification of the conspiracy hypothesis and corporate efficiency structure hypothesis.The conspiracy hypothesis exists in the power generation industry,but the corporate efficiency structure hypothesis does not hold.Finally,based on the results of empirical research,relevant suggestions are made on how power generation companies should improve their performance.