THE ANALYSIS OF CORPORATE PERFORMANCE AND GOVERNANCE ON INDUSTRY COMPETITION RATINGS IN CHINA

Jo-Hui Chen, Wen Lin Yeh () and Sabbor Hussain ()
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Jo-Hui Chen: Dept. of Finance, Chung Yuan Christian University, Chung-Li, Taiwan 32023, R.O.C.
Wen Lin Yeh: Dept. of Finance, Chung Yuan Christian University, Chung-Li, Taiwan 32023, R.O.C.
Sabbor Hussain: College of Business, Chung Yuan Christian University, Chung-Li, Taiwan 32023, R.O.C.

Global Economy Journal (GEJ), 2022, vol. 22, issue 01, 1-35

Abstract: This paper studies the influence of corporate performance and governance on the rating of industry competition degrees from 2012 to 2016. This study uses the ordered logit model and focuses on the non-manufacturing and manufacturing industries from the acquisition perspective and evaluates the rating change of industry competition. The results found that Tobin Q, Earnings Per Share, Management Layer Total Annual Salary, and Number of Board Directors impact the rating changes for industry competition. The manufacturing enterprises can improve the value and income by increasing investment when the market is more concentrated. It can expand the size of the board of directors and reduce compensation to improve the governance ability of the management. The corporate performance and governance of manufacturing industries are more competitive than non-manufacturing industries in the monopolized market. The government offers an efficient manufacturing ecosystem, emphasizes governance policies, and reduces M&A taxes helping localization and industry competition.

Keywords: M&A; corporate performance; corporate governance; degree of industry competition; ordered logit model (search for similar items in EconPapers)
JEL-codes: G34 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1142/S2194565922500063

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