Research On The Correlation Between Company Characteristics,institutional Environment And Company Performance

Issues such as global climate change and energy security are becoming increasingly prominent.my country has listed new energy as a strategic emerging industry to support and promote it,and the relevant policies and regulations of the new energy industry have also been increasingly improved.Corporate performance is affected by multiple factors,but the internal characteristics of the company itself are the fundamental factors affecting corporate performance.Some external factors,such as institutional environmental factors,play a role by acting on internal factors.Based on the introduction of relevant theories and a review of relevant literature,this article systematically analyzes the correlation between company characteristics,institutional environment and company performance in the new energy industry using literature research and descriptive statistics,and uses empirical analysis The sample data has been tested to provide theoretical guidance and experience for the government to formulate relevant regulations and policies as well as promote new energy technology innovation and governance structure adjustment.The main work and results are as follows:(1)According to the industry development characteristics of the new energy industry,11 indicators were selected,and a factor analysis method was used to build a comprehensive evaluation model for the performance of the new energy industry,to quantify enterprise performance and perform descriptive statistical analysis.It is concluded that the overall profitability of China’s new energy industry is poor,its growth capability is mediocre,and its solvency is good,but there are large differences between companies.(2)From the perspective of operating characteristics,governance characteristics,financial characteristics,etc.,a company characteristic model is constructed to reveal the characteristics of enterprises in the new energy industry,and then an in-depth analysis and examination of the correlation between their company characteristics and performance.The study found that:government subsidies,equity concentration,executive compensation,earnings retention rate and free cash flow per share are significantly positively correlated with corporate performance;while R&D intensity,property rights and the size of independent directors are not related to corporate performance(3)To quantify the institutional environment of various provinces in China,and study the mechanism by which the system affects the characteristics of new energy companies and the way they interact with performance.The results of the study show that in areas with good institutional environment,government subsidies,equity concentration,earnings retention rate,and free cash flow per share have a stronger effect on company performance.Executive compensation has a stronger role in promoting company performance in areas with poor institutional environment.The intensity of R&D investment,the proportion of state-owned shares held and the size of independent directors have no significant correlation with company performance in all regressions.This article will expand the research content related to corporate performance,and provide background information and theoretical basis for my country’s new energy companies to properly deal with the problems between corporate characteristics,institutional environment and corporate performance.