Competitive Strategies,Shareholding Structure And Firm Performance

Outstanding performance returns has always been the goal of enterprises,and the improvement of corporate performance largely depends on the correct orientation of strategic decision and the rational allocation of corporate governance mechanism.The academic research on enterprise performance mostly from the shareholding structure,Top management characteristics,innovation investment and corporate governance,but research from the competitive strategies,ownership structure and corporate performance is relatively few.According to Porter(1980,1985),the executive efficiency and transformation benefit of strategic decision will directly affect the business performance of the enterprise,Jensen & Meckling(1976)and Mintzberg(1978)said that different shareholding structure arrangements will make enterprises take different strategic decisions,and the degree of matching between the two will also affect the firm performance.In my opinion,competitive strategies are the "top-level design” of enterprise development,shareholding structure is the "action bodies" for the implementation of competitive strategies,which combines the competitive strategies with the the shareholding structure,that is,the "top-level design" is incorporated into the"action bodies","action bodies" are rooted in "top-level design",which has important theoretical value and practical significance for improving firm performance.Based on the theory of strategic management,the theory of competitive advantage and the theory of corporate governance,this paper selects the listed companies in Shanghai and Shenzhen A-share manufacturing companies from 2013 to 2017 as samples,and constructs the model to study on the relationship of competitive Strategies(overall cost leadership and differentiation strategy),shareholding structure(equity concentration,equity check and balance and ownership nature)and enterprise performance.Draw the following conclusion:(1)the implementation of overall cost leadership and differentiation strategy can bring about the current performance growth,and the implementation of overall cost leadership enterprise current performance growth is more significant;(2)equity concentration plays a positive role in regulating the relationship between competitive strategies and firm performance;(3)equity check and balance has a negative regulating effect on the relationship between competitive strategies and firm performance;(4)compared to non-state enterprises,the performance growth of state-owned enterprises brought about by the implementation of competitive strategy is more remarkable.The above results indicate that the choice of the rightcompetition strategies of the enterprise is helpful to the improvement of the enterprise performance,the relative concentration of the shareholding structure is favorable for the play of the positive role of the competition strategies on the enterprise performance.too high or too low equity check and balance is not conducive to the play of the positive role of the competition strategies on the enterprise performance;Because of the special political background of the state-owned enterprises,the growth of the current performance brought by the competition strategies is better than that of the non-state enterprises.According to the research conclusions of this paper,the following policy suggestions are put forward: enterprises should take account of external environment and internal resources to formulate and implement appropriate competitive strategies,optimize the allocation of resources;adjust the corporate governance structure in time,maintain the moderate concentration and relative of equity;standardize the internal shareholder's behavior and give full play to the advantage of state-owned shares.In addition,enterprise should perfect the supervision and restraint mechanism in order to realize the sustainable development of the enterprises.