Abstract

Years using 2003-2006 panel data on the competitiveness of China's listed companies empirical study found that: As the competitiveness of corporate governance is relatively weak, making the overall competitiveness of China's listed companies is not high. However, changes in the competitiveness of listed companies, the trend shows that due to institutional constraints, and their own development needs, the gradual and reasonable ownership structure of listed companies, shareholders gradually standardized, the board of directors and supervisors to gradually improve the competitiveness of governance, making governance of listed companies competitive on the rise; The solvency of the listed companies as well as the decline in ability to grow, making it the financial strength of the downward trend. Enhance the competitiveness of listed companies is to improve the governance structure and fundamental mechanisms of governance, ownership structure optimization must be accompanied by a rational investor awareness training can only be effective, it may lead to more serious acts of the majority shareholder. In addition, listed companies must also focus on improved financial situation in order to avoid deteriorating financial situation and financial risks increase. This study provides empirical evidence on the competitiveness of Chinese listed companies by adopting a panel data set of Chinese listed companies between 2003 and 2006, which indicates that the competitiveness of listed companies is fairly lower because of the governance competitiveness being lower. However, the variable tendency of the listed companies enhances significantly their competitiveness at different years because of the bound system, intrinsic demand of its development, ownership structure being more reasonable, shareholder meeting being more conformable to standard, governance competitiveness of board and supervisor meeting promoted gradually. On the other hand, financial strength of listed companies appears a descend trend owing to the descending of debt paying ability and growing ability. Consequently, an important proposal for practice is that improving governance structure and mechanism are fundament of promoting their competitiveness, and to optimize ownership structure should accompany with cultivating rational conscious of investor, or else it will lead to severe majority shareholder behavior. Besides, listed companies must pay close attention to the improvement of financial state for the debt paying ability to avoid financial state deterioration and financial risk