The Impact Of Fair Competition Mechanism On Corporate Performance

Since entering the new normal,China has paid more attention to quality in the process of economic development.However,inadequate institutional mechanisms have restricted the improvement of the quality of macroeconomic development and the improvement of the operating performance of micro-enterprise entities.Among the mechanisms restricting the quality of macroeconomic development and the operating performance of micro-enterprise entities,the lack of fair competition mechanism is an important aspect.The lack of fair competition mechanism will make it difficult for market competition to proceed effectively and the overall market efficiency will be relatively low.At the same time,it is difficult to effectively improve corporate performance.In recent years,in order to promote the transformation and upgrading of economic structure and the transformation of development kinetic energy,the state has continuously promoted the reform and development of the market-oriented mechanism and constantly improved the fair competition mechanism.However,the effect of fair competition mechanism on corporate performance and its mechanism of action need to be tested by empirical evidence at the micro-enterprise level.Against this background,based on the China Enterprise General Survey(CEGS)data,this paper uses fixed effect models and mediation effects to empirically test the effects of fair competition on corporate performance and specific mechanisms.Empirical tests have found that the fair competition mechanism has a significant positive impact on corporate performance.The total factor productivity of companies that evaluate effective intellectual property protection is 0.16 percentage points higher than that of companies that evaluate invalid intellectual property protection,and the evaluation of total factor productivity of corporates with reduced administrative monopolies is 0.07 percentage points higher than that of corporates with reduced administrative monopolies,and the total factor productivity of companies that consider market entry and exit to free corporates is 0.09 percentage points higher than that of corporates that do not consider market entry and exit free.At the same time,in terms of the impact of intellectual property protection,the removal of administrative monopoly,and the freedom of market access on the total factor productivity of enterprises,the impact of intellectual property protection on the total factor productivity of enterprises is relatively greater.In terms of specific action mechanisms,this research considers that the mechanism of fair competition mechanism affecting corporate performance lies in the innovation incentive effect of intellectual property protection,the effect of removing the administrative monopoly resource allocation effect,and the external constraint effect of free market access.The empirical results show that the investment in technological innovation of corporates explains 22.78% of the impact of intellectual property protection and total factor productivity,and the effect of resource allocation explains 65.93% of the effect of removing administrative monopoly and total factor productivity,market competition and consumers external restraint effect on the product quality of an corporate explains 18.56% of the effect between the freedom of market entry and exit and total factor productivity.Finally,based on the empirical conclusions of this research,this research proposes to establish and improve a punitive compensation system,accelerate the implementation of antitrust policies,further promote administrative approval reforms,and accelerate the transformation of selective industrial policies to functional industrial policies,thereby further improving equity Competition mechanism,and on this basis,promote the steady improvement of corporate performance.