Product Market Competition and Identities of Ultimate Owners:Performance Analysis of Chinese Listed Companies

摘要

In this paper, we analyzed the impact of product market competition and different identities of enterprises' ultimate owners on firm performance, and analyzed the impact of interaction between product market competition and identities of ultimate owners on firm performance using enterprise data on Shanghai and Shenzhen Stock Markets from year 2001-2004. We find:①Product market competition has a positive impact on firm performance, namely, the more severe the product market competition, the better the firms' performance;② The ultimate control of state-controlled industrial companies has significant positive influence on firm performance, the ultimate control of natural person or private company has prominent negative effect upon enterprise's performance, and this result is different from most results of other authors. Add the interaction into models and find:①It has prominent negative effect on firm performance when governments control enterprises directly; ② Product market competition is substitute for direct control of government, but complement-tary to the state-controlled industrial companies and the state controlled investment and management companies. So we think, in order to improve firm performance of our country, we couldn't only emphasize just one of the two aspects of the product market competition or the reform of enterprise's property right, but to combine the two together organically. Certainly, for different companies we should adopt different policies, and make sure not to adopt the same competition or ownership reforming strategy to all enterprises.