The Influence Of Product Market Competition And Board Independence On Corporate Performance

Under the background of market economy development,foreign investment introduction and industrial organization optimizatiorn,enterprises are deeply influenced by product market competition.Product market competition is very important for company performance and board governance.We know that the independence of the board is an important feature of the board,so we study the relationship between product market competition and the independence of the board of directors,which is of great practical significance to the performance of the company.In this paper,the data of 2011-2016 years' A listed companies listed on the main board of the Shenzhen stock exchange are selected as the research samples,and the principal component analysis method is used to synthesize a comprehensive index CP for receivables turnover,inventory turnover and gross interest rate,and CP can be used to reflect the competitive strength.We divide the whole sample into high competitive intensity samples and low competitive intensity samples with the median of the CP value average,and the regression model of the board independence and the company performance,the product market competition,the board independence and the company performance regression model,the regression model of the board independence and the company performance according to the product market competition and the company performance regression model established by the three samples.The model makes an empirical analysis on the influence of product market competition on company performance and the influence of board independence on corporate performance,and the relationship between product market competition,board independence and company performance.The results show that product market competition is positively related to company performance,and the higher the intensity of product market competition,the better the company's business performance.The proportion of independent directors is positively related to company performance.Increasing the proportion of independent directors can improve company performance.The proportion of product market competition and independent director is an alternative relationship.It shows that in low competition industry,the proportion of independent directors is negatively related to company performance.In the high competition industry,the proportion of independent directors is positively related to the performance of the company.We know that independent directors mainly play service function in low competitive industries and independent directors are in Gao Jing.Under the contention industry,the main function of supervision is to be played.Therefore,the increasing proportion of independent directors plays a limited role in the fierce market competition-It may be that when the enterprise faces fierce competition,the pressure of the company's shareholders and management will make the agency cost lower,and the manager layer is beset with more difficulties and challenges at this time.The manager will work harder,the cost of production will be reduced,and the increase in the proportion of independent directors may be more likely.It will reduce the performance of the company.